Philips, Accton to merge wireless networking units

Koninklijke Philips Electronics NV and Taiwanese networking equipment maker Accton Technology Corp. have signed a letter of intent to create a joint-venture company that would combine the wireless connectivity module units of both partners, the companies said in a statement Wednesday.

The joint venture will develop wireless products based on the Wi-Fi (802.11b, 802.11a, 802.11g) and Bluetooth networking standards, the statement said, noting these products would be intended for a broad range of applications, including service providers, consumer electronics, computers and mobile phones. The joint venture would manufacture these products under contract for other companies, it said.

The company, which has yet to be named, will also develop a product to bridge networks based on Powerline Communication, which uses AC (alternating current) power lines to transmit data, and Wi-Fi networks, the statement said. Down the road, the joint venture is also expected to focus on the development of broadband networking applications, such as streaming video and music, multimedia messaging, and voice over IP (Internet Protocol), it said.

The joint venture, which is expected to be established before the middle of the year, will be based in Hsinchu, Taiwan, and employ around 200 staff drawn from both companies with expected initial annual revenue of around US$250 million, the statement said. Ownership of the joint venture will be split roughly evenly between Philips and Accton, it said.

The new company will not incorporate all of Accton’s wireless networking business and the company will continue to develop and manufacture wireless networking products, said Kris Chien, a spokeswoman for the company.

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now