NEW YORK-No. 2 mobile-phone maker Motorola may rely more heavily on RF Micro Devices Inc. for its mobile phone chips as the company works to trim its supply chain. Investment banking firm Piper Jaffray pointed to RF Micro Devices’ increased operating expenses in the first quarter as evidence the company is working to woo Motorola with its Polaris chip offering.
“We believe RFMD through its increased dedication of resources to Motorola is positioned to become a key long-term supplier to Motorola,” the firm wrote in a note to investors. Piper Jaffray makes a market in the securities of Motorola and RF Micro Devices.
Motorola accounted for around 12 percent of RF Micro Devices’ business in the fourth quarter of last year, according to numbers from Raymond James. Nokia Corp. was the chipmaker’s top customer, accounting for 35 percent of its revenues. As the mobile-phone industry continues to grow, chipmakers across the industry are working to score sales to the market’s largest players.
