TI, Microsoft plan wireless chip alliance

Texas Instruments Inc. and the world's largest software maker, Microsoft Corp., have struck a deal that could bolster TI's position as the premier supplier of semiconductors to the fast-growing

Friday, March 24th 2000, 12:00 am

By: News On 6

Texas Instruments Inc. and the world's largest software maker, Microsoft Corp., have struck a deal that could bolster TI's position as the premier supplier of semiconductors to the fast-growing market for wireless devices.

Under the agreement announced Wednesday, Microsoft will allow 5 million software developers certified in its Windows CE operating system to start designing on programmable digital signal processors made by TI.

Financial terms of the deal were not disclosed.
Both companies said their customers have been asking for software designs on the TI semiconductor with an eye toward developing a variety of new appliances.

"This is a further reinforcement of our dominance in the field of DSP technology," said Jeff Wender, spokesman for Dallas based-TI. Already, TI sells more DSPs to the wireless telecommunications industry than any other manufacturer.

Keith Hammond, spokesman for Microsoft, said developers using Microsoft's Windows CE operating system for hand-held devices will be able to design programs to include digital audio, electronic commerce and video on handsets.

"This allows developers to create Windows CE devices that take advantage of DSPs, which do certain things such as graphics and data-intensive applications extremely well," Mr. Hammond said.

Microsoft officials have said they want "the future stars of the Internet" to run on Windows CE software.

Separately on Wednesday, the company said it would spend up to $125 million to support new Internet companies to boost sales of Windows CE.

One possible application for a DSP running Windows CE would be for streaming, or real-time delivery, of news and advertising content to video screens on gasoline pumps.

Also on Wednesday, several semiconductor stocks, including TI, received a boost from a positive report by Goldman, Sachs & Co. managing director Gunnar Miller.

Shares of TI traded up more than $7 a share to $179.06 by 4:45 p.m. Dallas time.
Shares of Redmond, Wash.-based Microsoft were up 50 cents to $103.25.