Marvell Tech Taps Trimble's GPS Software for Chipsets
NEW YORK -(Dow Jones)- Marvell Technology Group signed a licensing agreement with Trimble Navigation in a move that it hopes will improve the chips it builds for portable devices.
The Sunnyvale, Calif., company said late Friday that the deal allows it to take Trimble's global-positioning-systems software and better integrate it into its customized chipset, allowing it to run more efficiently. The new chipset could help Marvel expand its market beyond cellphones, possibly providing GPS chips for portable videogame devices, media players and digital cameras.
"This will allow us to reach deeper into existing customers and help us find new customers," said Sameer Bidichandani, senior director of technology strategy at Marvell.
The wireless industry is increasingly looking to add GPS services to their cellphones. Consumers use them for driving directions or to get suggestions on places to eat or watch movies. Carriers, meanwhile, can charge more for the services and deliver targeted advertisements based on users' locations.
But running a GPS application is a power-consuming task for most phones. Enter Marvell. The company builds its chips with power consumption in mind, and says its devices will run twice as long.
Trimble liked the expertise Marvell showed in customizing and integrating the chips, according to Bill Dussell, director of integrated products at Trimble. The process improves upon what is currently out there.
"We see a number of problems with the way they're currently implemented," he said. "There needs to be a deeper level of integration."
Marvell offered GPS capabilities in prior chipsets, but the licensing agreement allows Marvell to take full control of the development for a more efficient product, said Bidichandani. Financial terms weren't disclosed.
The company is a lower-tier provider of cellphone chips that targets the high-end smartphone market. Its processors and cellular chips, for example, are found on Research in Motion's Blackberry products.
With the integrated GPS chips, Marvell hopes to supply top-tier handset manufacturers with chips for their mass-market phones. In addition to GPS, the chipsets also feature WiFi, Bluetooth, and FM Radio applications. The company hopes the additional features will raise the average selling price for its chips.
Marvell faces stiff competition. The market is dominated by Texas Instruments and Qualcomm, which both offer the same capabilities and have built strong relationships with the major handset vendors.
Bidichandani said devices carrying Marvell chips will hit the market by 2009.
-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 23rd August 2008
