Network infrastructure chip outfit Mindspeed has written a cheque for the W-CDMA signal processing system from chip vendor IPG.
It is not clear how many zeroes were on the cheque, but Mindspeed said that the sale will not hurt its third quarter figures. We guess that means it has not had to empty the Christmas club funds.
IPG makes gear for the W-CDMA 3GPP standard release 8. This is being touted as the “next big thing” and buying the outfit gives Mindspeed an advantage in the coming 4G war.
What seems to have swung the sale is that IPG designed a dual-mode turbo decoder which combines W-CDMA and long-term evolution standards. This product means that decoders no longer need complex memory and logic systems.
In a press release, Thomas Medrek, Mindspeed’s senior vice president and general manager of communications convergence processing said that IPG had a reputation for good communications systems design, software-defined radio expertise and dual-mode wireless development.
Raouf Halim, Mindspeed’s CEO said that his outfit is focused on remaining a leader in 4G wireless gear. It is proving fairly lucrative as OEMs want basestation applications for 4G/LTE rollouts worldwide.
At the moment Mindspeed has admitted that revenue for the current quarter will be between $42.2 million and $43.9 million which is fairly flat.