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Article

Title: Qualcomm to Buy Chip Businesses

Author: Clark, Don Article Type: Company
Source: Wall Street Journal, v248 n131 pB4(1) Publication Date: Dec 4, 2006
  ISSN: 0193-2241
URL of Publication: http://www.wsj.com

Qualcomm Inc. will purchase two chip companies that could move the firm into new markets for wireless technology and make its position in relation to its rivals much stronger. Qualcomm plans to buy Airgo Networks Inc., a startup firm specializing in Wi-Fi wireless technology that connects laptop computers to the Internet. Qualcomm is also acquiring some operations of RF Micro Devices Inc., the manufacturer of Bluetooth technology used to link earpieces wirelessly to cell phones. While the dollar value of the transactions is probably small, the deals could have a huge impact on Qualcomm's plans to ease the movement of mobile devices among various communications networks. According to Sanjay Jha, president of Qualcomm's CDMA technologies group, the company has, for the first time, the ability to offer broadband wireless data services wherever users go. Qualcomm sells chips based on code division multiple access (CDMA) technology for cell phones and related products. The company also collects patent royalties from the makers of handsets. Qualcomm has been moving into the laptop market as well, promoting cellular technology that let users access the Internet when they are not close to a wired or Wi-Fi connection. Qualcomm created a technology known as EV-DO that is offered by some cell carriers, as well as chips that are based on the HSDPA wireless technology.

Companies:
Airgo Networks Inc QUALCOMM Inc

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