IBM Microelectronics Division and CommQuest Technologies Inc. last week announced a merger agreement, giving IBM an entrance into the wireless industry with CommQuest’s experience in semiconductors for wireless applications. The arrangement is valued at $180 million, which IBM said will be financed by cash on hand.
The merger, said the companies, “will speed development of a new generation of multifunction, low-cost, mobile `information appliances,’ such as single chip, watch-size cellular phones and products that combine cell phone, e-mail and Internet access functions in a single hand-held package.”
CommQuest, based in Encinitas, Calif., recently introduced a tri-band Global System for Mobile communications chipset that will allow global roaming in the 900 MHz, 1800 MHz and 1900 MHz frequency band using one handset. The company’s Communication Application Specific Processor architecture reduces the number of components in a handset from 400 to about 250, said CommQuest.
IBM said the merger expands its strategy of providing key technologies to other companies as an original equipment manufacturer, as well as accelerating the use of its silicon germanium semiconductor technology. Silicon germanium can operate at extremely high speeds with low power requirements, making it an ideal technology for wireless communications applications by enabling the transmission and reception of high frequency signals while extending the battery life of handheld devices, said IBM.
Joint product development also will include the use of IBM’s copper chip technology to provide for further reductions in communications system power requirements, said IBM.
“We believe joining with CommQuest to design high-speed communications devices using silicon germanium and copper will provide significantly lower-cost chip solutions for manufacturers of communications products,” said Dr. Mike Attardo, general manager of IBM Microelectronics Division.
