Intel Purchase a Bid Toward Smart Modems

Deal with Texas Instruments seeks to combine its processor technology with cable modem chips.

Intel is closing in on a purchase of the cable modem product line of chip maker Texas Instruments in a move designed to leverage its processor technology toward smart modems.

Though the deal has been announced, there will be no word on the terms of the transaction until the fourth quarter, according to the companies.

Texas Instruments, which is based out of Dallas, is one of the dominant suppliers in the U.S. of chips for cable modems, serving customers such as Motorola, Arris and Cisco.

Intel, which is based out of Santa Clara, Calif., can now position itself toward manufacturing advanced residential modem products and cable boxes at a time when consumer electronics is moving toward digital TVs, Blue-ray and more interactive entertainment.

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