RealTime IT News

SiRF Finds Motorola's GPS Chip Line

UPDATED: SiRF will buy Motorola's global positioning system chipset product line for $20 million in cash.

The San Jose, Calif., navigation chip and software maker will integrate Motorola's products, which are used in a range of mobile platforms, such as automobile navigation systems, cellular handsets and two-way radios.

SiRF will also gain the rights to GPS chipsets that Motorola has in development and the services of 40 Motorola employees based in Tempe, Ariz. SiRF will open a design center in the Phoenix area to accommodate them.

"Selective acquisitions that add significant value to our core market leadership position are an integral part of our growth strategy," Rebecca DiCorti, a SiRF spokeswoman, said.

In late April, it paid $33 million in cash and stock for Kiesel Microelectronics, a Stockholm-based designer of complex radio frequency integrated circuits founded by Ericsson vets.

SiRF's chips and software are used in a number of products, including automobile navigation and telematics systems as well as mobile phones, mobile consumer devices and PDAs.

For its part, Schaumburg, Ill.-based Motorola said it will be able to devote more attention to its core automotive business. As part of the deal, SiRF will become a preferred GPS technology supplier to Motorola.

SiRF's architecture is currently used in Motorola's iDEN handsets. The company has also worked with Motorola's 3G group, DiCorti said.