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LONDON - British microchip designer CSR said on Monday it would make an all-in-one GPS (global positioning system) and Bluetooth chip for mobile gadgets after it bought up two GPS specialists.
Bluetooth expert CSR said it would make the single chips after acquiring Swedish firm NordNav for US$40 million ($57 million) and Cambridge Positioning Systems for US$35 million.
It will pay a further US$35 million if NordNav hits agreed targets.
Chief executive John Scarisbrick told reporters the super-sensitive technology would be far more effective than traditional GPS and could be used indoors.
The chips would also drain less power and be cheaper for handset makers than having two separate chips in their devices.
The benefit comes from loading software for the two technologies onto a separate chip and making the one processor do all the work.
It is also likely to open up new a host of new uses for phones and mobile gadgets such as allowing worried parents to track children and giving emergency services a way of locating casualties.
Scarisbrick said its combined GPS and Bluetooth chip would cost manufacturers an extra US$1 per chip as opposed to around US$5-US$10 for putting in a current standalone GPS chip.
He said mobile handset makers had already expressed interest.
"We know handset makers are enthusiastic about GPS at a lower price point and we are confident we will see a significant rise in the number of handsets featuring GPS."
"It can work indoors and deep urban areas so we believe it will be very popular with device makers."
CSR said both deals would be paid for using existing cash and expects to launch its first GPS products during the first half of the year and make money on them from 2008.
Some analysts have predicted that CSR's Bluetooth chip could be jettisoned by handset makers as other larger chip makers replicate the expertise and add Bluetooth capabilities into their own chips.
They said the move to broaden its offering into GPS was a sensible one considering the interest from handset makers and the potential uses and market for the technology.
"Given both wireless operators and handset vendors are looking to provide consumers with localized personal services in the coming few years, we view this morning's announcement as opportune in terms of timing," said analysts at Deutsche Bank.
"We view the deals as sensible and see the price point as certainly interesting," they added.
- REUTERS
