Intel to buy Texas Instruments' cable modem unit

Chipmaker will acquire TI's cable modem product line in order to boost its system-on-a-chip Atom processor business.

Brooke Crothers Former CNET contributor
Brooke Crothers writes about mobile computer systems, including laptops, tablets, smartphones: how they define the computing experience and the hardware that makes them tick. He has served as an editor at large at CNET News and a contributing reporter to The New York Times' Bits and Technology sections. His interest in things small began when living in Tokyo in a very small apartment for a very long time.
Brooke Crothers

Intel said Monday it agreed to acquire Texas Instruments' cable modem unit as it tries to expand markets for its Atom processor line.

The acquisition is a good fit with Intel's CE line of system-on-a-chip (SOC) Atom processors, the company said. "The purchase enhances Intel's focus on the cable industry...where the company's expertise in building advanced system-on-chip products, based on Intel Atom processors, will be applied," Intel said in a statement.

Intel plans to combine TI's Puma product lines with Data Over Cable Service Interface Specification (DOCSIS)-based technology (for defining compatibility between cable modems) and Intel SoCs to deliver advanced set-top box, residential gateway, and modem products for the cable industry.

"Intel is focused on delivering SOCs that provide the foundation for consumer electronics devices such as set-top boxes, digital TVs, Blu-ray disc players, companion boxes and related devices," said Bob Ferreira, general manager, Cable Segment, Intel's Digital Home Group, in a statement.

All employees of Texas Instruments' cable modem team received offers to join Intel at sites in their home countries, primarily Israel, and will become part of Intel's Digital Home Group, Intel said.

Additional terms of the transaction were not disclosed. The agreement is subject to regulatory review and customary closing conditions and the deal is expected to be closed in the fourth quarter of 2010.