1999-12-07 , SSC-9910
Business News From Philips Semiconductors

Co-operative agreement will also help to establish Bluetooth interoperability

Philips Semiconductors, the third largest supplier of semiconductors for the global telecommunications market, announced today that it has signed a co-operation & development agreement with Ericsson Mobile Communications, the recognized leader in Bluetooth technology, to develop and manufacture Bluetooth for future applications. This agreement enhances both companies' leading position in driving the evolution of Bluetooth technology and in strengthening one proven core architecture so that Bluetooth is more widely adopted.

The market for Bluetooth compliant products, which communicate with each other via radio transmission therefore eliminating the need for wires, is expected to reach US$1.3 billion by 2002¹⁾. And with over 126 million Bluetooth-enabled products such as cellphones, notebook PCs, digital cameras and other handheld devices expected on the market by 2002, it is a market predicted to grow even faster than cellphones.

Assuring Bluetooth Interoperability
Orjan Johansson, director and general manager of Ericsson Bluetooth Product Unit said, "As the largest European semiconductor manufacturer, Philips Semiconductors' use of the Ericsson Bluetooth Core will help to promote product interoperability, a critical element in achieving market growth and success for Bluetooth applications. Philips Semiconductors also brings valuable expertise in RF and ASIC as well as providing expertise in creating products, which makes it a logical partner for electronic product companies including Ericsson Mobile Communications."

The co-operation agreement enables the two wireless leaders to work towards a common goal - offering advanced system-on-chip solutions for standard, as well as customized products with a high level of support and service. The co-operation will see Ericsson and Philips Semiconductors pool their know-how and resources to further develop solutions based on the current Ericsson Bluetooth Core and Bluetooth protocol and Philips Semiconductors IC expertise. To further encourage the adoption of this standard, ARM LTD. will support joint solutions through a previous agreement with Ericsson.

For the industry, this unparalleled breadth of expertise in the partnership built on use of the same Bluetooth core, means access to leading edge technology, short time-to-market and low-cost silicon for new Bluetooth products. This will support fast introduction in the market place of a wide range of customer-differentiated Bluetooth applications and products with guaranteed interoperability. The agreement permits both parties to develop Bluetooth system solutions, based on the common core, independently of each other, for their own customers.

Complete solutions available today. Higher integration single-chipsets scheduled
"Philips is pleased to be working with one of the pre-eminent Bluetooth players on strengthening the Ericsson Bluetooth Core," said Peter Baumgartner, vice president & general manager, International Marketing & Sales, Global Market Segment Communications, at Philips Semiconductors. "Philips Semiconductors' and Ericsson's work will together certainly result in a clearly defined roadmap to higher levels of integration, resulting in faster time to market for a complete low-cost single chip Bluetooth solution and a best-in-class implementation in silicon. With complete solutions available today and higher integration chipsets expected for delivery early in 2000, manufacturers and software houses designing-in Bluetooth will experience a big step forward towards interoperability."

Companies Provide Synergistic Technology
The Philips Semiconductors-Ericsson agreement incorporates the best of both companies' offerings. With its long history in wireless ICs, Philips Semiconductors brings critical RF and silicon implementation technology to the table. Originally developed for DECT, Philips's low RF technology meets the low cost, low component count requirements of Bluetooth applications, while its RF power amplifier technology is capable of boosting the Bluetooth wireless range from 10 to 100 meters, as required in large office and outdoor applications. Philips Semiconductors' leading digital technology, with a large portfolio in telecom, multi-media and consumer functions, will provide optimized solutions as well as libraries for ASICs for a wide variety of applications. And with leading-edge technologies in manufacturing processes, packaging, design tools and testing, Philips Semiconductors can deliver a whole silicon system solution to equipment manufacturers and software houses.

As one of the co-founders of the Bluetooth Special Interest Group (SIG), Ericsson started this new technology and brings a wealth of Bluetooth expertise to the cooperation. Based on Ericsson's Bluetooth Core and Bluetooth protocol, the two companies will work together to further develop Bluetooth components and applications to match future requirements.

About Bluetooth
The Bluetooth technology is set to revolutionize the personal connectivity market by providing freedom from wired connections. It is a specification for a small form-factor, low-cost radio solution providing links between mobile computers, mobile phones and other portable handheld devices and connectivity to the Internet. The Bluetooth Special Interest Group (SIG), consisting of leaders in the telecommunications and computing industries, is driving development of the technology and bringing it to market. The group includes founding members Ericsson, IBM, Intel, Nokia and Toshiba, and more than 1000 other companies.

About Ericsson
Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers - network operators, service providers, enterprises and consumers - the world over. Additional information about Ericsson and Bluetooth is available on the World Wide Web at:  http://www.ericsson.se

About Philips Semiconductors
Philips Semiconductors is the eighth largest semiconductor supplier in the world according to Dataquest's 1998 market share report. Philips Semiconductors' innovations in digital audio, video and mobile technology place the company in a leadership position in the consumer, multimedia and wireless communications markets. As a global company, offices in 40 countries serve major markets. Philips Semiconductors, headquartered in Eindhoven, The Netherlands, is a division of Royal Philips Electronics. Please join us at the Philips Semiconductors website: www.semiconductors.philips.com for further information.

1) Statistic according to Cahners In-Stat Group, Scottsdale, Arizona