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ABI looks at TI's purchase of Zigbee leader Chipcon
Posted: 25-Dec-2005 [Source: ABI]

[TI's purchase of Chipcon has ABI forecasting Zigbee technology will happen in a big way.]

Oyster Bay -- Texas Instruments announced its intention to purchase Chipcon, a leading developer of Zigbee technology, for $200 million. When considered in isolation, this would seem to have little impact on the future direction of the Zigbee markets, but looking a little deeper, it clearly has far more interesting undertones.

This move would give TI a strong foothold in numerous established and emerging wireless connectivity solutions from Wi-Fi to Bluetooth -- and now Zigbee. More importantly, the announcement demonstrates that after a slow start, momentum is building behind the Zigbee standard, with TI joining the ranks of Freescale, Motorola, Samsung and Mitsubishi. This level of support clearly indicates that even with significant issues surrounding the slow time to market for products because of a lengthy standard ratification exercise, this technology will happen in a big way.

"This time last December the Zigbee standard was ratified and ABI Research correctly predicted that the race to market would begin in earnest," stated Principal Analyst, Stuart Carlaw, "This purchase shows that the addition of another super heavyweight contender is really heating up the race. TI will bring another level of competition to this market that may well help to drive down solution costs for Zigbee and open doors to more price-sensitive applications."

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