Date:22/03/2006 URL: http://www.thehindubusinessline.com/2006/03/22/stories/2006032202160400.htm

Back Chipmaker SiRF buys TrueSpan

Preethi J

Hungry for more

Bangalore , March 21

GPS chipmaker SiRF Technology Holdings has acquired TrueSpan Semiconductor, a US-based silicon design company with an R&D team in Bangalore.

The fact that TrueSpan had a team in Bangalore clinched the deal, said Mr Kanwar Chadha, Founder and Member of board of directors, SiRF Technology. The size of the deal was not disclosed.

This is the fourth acquisition by the Nasdaq-listed firm in a year. In 2005, it acquired a Swedish RF design company, Kisel Microelectronics AB and Motorola's GPS division (for $20 million in cash). In January, Bangalore-based ImpulseSoft was acquired in a cash-n-stock deal worth Rs 67.5 crore. The company will continue to look at "new and interesting technology" companies to acquire, said Mr Chadha, adding, "Acquisitions are a clear part of our strategy."

While ImpulseSoft employed 50 engineers, TrueSpan had a headcount of 30. The two teams will be combined, said Mr Chadha. With the acquisition, SiRF will have flexibility in its "silicon hiring" (recruiting hardware engineers) with a choice of Noida and Bangalore, he said. "The previous acquisition brought expertise in software and algorithms, while this one brought in communications systems, drivers and baseband research. Now, SiRF has a complete range of inter-related products for the consumer, PC and mobile space," he added.

TV-ON-YOUR-MOBILE

TrueSpan's research in mobile TV will be leveraged by SiRF's established customer and partner base. According to analysts, there will be 74 million subscribers to TV-on-your-mobile by the end of the decade.

Bharti Telecom is conducting trials, informed Mr Chadha, which will take off once DVB (digital video broadcast, a standard for broadcast of video content) infrastructure is deployed. This will happen in the second half of 2007 in India, he said.

FAB IN INDIA

SiRF has been approached for participation in India's first chip manufacturing facility. "We will look at manufacturing here when the facility comes up," said Mr Chadha.