Texas Instruments Inc.'s intention to buy Chipcon is expected to help drive down the costs for products based on Zigbee, a wireless communication technology used by a variety of home and business devices, a research firm said Friday.
Dallas-based TI said this week that it planned to buy Chipcon, headquartered in Oslo, Norway, for $200 million. The deal is expected to close in January 2006.
Chipcon designs short-range, low-power wireless transceiver devices. TI planned to combined the company's Zigbee-based products with its analog silicon technologies to develop wireless products for consumer, home and building automation applications.
ABI Research said Chipcon would expand TI's foothold in emerging wireless connectivity technologies, such as Wi-Fi and Bluetooth, to include Zigbee. In embracing the latter specification, TI is joining the ranks of Freescale, Motorola, Samsung and Mitsubishi.
"This purchase shows that the addition of another super heavyweight contender is really heating up the race," ABI analyst Stuart Carlaw said in a statement. "TI will bring another level of competition to this market that may well help to drive down solution costs for Zigbee and open doors to more price-sensitive applications."
Zigbee is designed for network communications in industrial controls, medical devices, smoke and intruder alarms and building automation and home automation systems. The technology is slower than Wi-Fi and Bluetooth, but is built for low power, so that batteries can last for months and even years. The transmission range is about 50 meters.