[Uniqueness of 3G market leads to launch of new business unit at Phillips. ]

by J. Robert Lineback, Noordwijk , the Netherlands -- "Philips Semiconductors is stepping up its assault on wireless communications markets. During a series of press briefings here this week, Philips launched a dedicated telecom ASICs business unit focused on customizing baseband chips and it the introduced an application co-processor series for multimedia functions in third-generation (3G) handsets.

"The semiconductor subsidiary of Royal Philips Electronics N.V. decided it was time to spin out telecom ASICs as a new business unit because handset chip consumption continues to accelerate and 3G systems appear to be shaping up as an entirely different market than traditional cellular phones, said Philips managers here. In addition, ASIC requirements in telecommunications are different from computers and other systems, with much greater emphasis on small chip size, low-power consumption, and maximum signal processing, said Daniel Abecassis, vice president of the new business unit.

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