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To: tech101 who wrote (666)5/8/2000 1:42:00 PM
From: tech101  Read Replies (1) | Respond to of 1056
 
Cypress gambling on Bluetooth

Cypress Semiconductor is betting bigtime on Bluetooth wireless connection technology. This week it added a critical piece to its capability in this emerging market by agreeing to acquire Alation Systems, developer of a Bluetooth-like high-frequency baseband technology. This Mountain View, Calif., company, along with RadioCom, an RF engineering firm also being acquired by Cypress, will make up a new unit called the Interface Products Division.
"Cypress now has the software, hardware, analog, and manufacturing process expertise to create integrated solutions for multiple segments of the wireless business," says Cathal Phelan, vice president heading the new division.

Cypress aims to produce silicon for Bluetooth for "less than $7 per connection," he says. The chip maker now produces 99% of the bill of materials needed for adding a Bluetooth wireless connection between a cellular handset and a USB-enabled computer. And it plans to offer a fully integrated Bluetooth chip by the end of next year. "The combination of Alation, RadioCom, and Cypress gives us all we need to produce the Bluetooth portion and front end of a cell phone," says Dan McCranie, executive vice president. Bluetooth's appeal to Cypress is not in just cell phones. The high-frequency, short-range RF technology will also support in-home wireless LANs. Market watchers predict Bluetooth component sales alone will hit $1 billion annually by 2003, and cell phones will account for less than 20% of that total.