Motorola Inc. apparently is covering all its bases. The broadband equipment maker signed an agreement with Conexant Systems Inc., where Conexant will be a second source for standard cable modem chipsets to Motorola's broadband communications and semiconductor divisions.
First supplier is and remains Broadcom Corp., and the new competition is intended to reduce Motorola's risk and make a good first supplier even better. Motorola is one of Broadcom's three biggest customers, along with Cisco Systems Inc., which issued an earnings warning this week.
"This second source agreement doesn't affect the current contractual agreements with Motorola or our role as supplier of chips," Broadcom spokesman Bill Blanning told CEDaily. "There will always be competitors who provide second source (products), but ultimately it's about execution, and we're confident in our ability to continue delivering superior products to Motorola and other customers.
"I can't go beyond that at this point," he says.
Likewise, Conexant and Motorola will collaborate on new, customized silicon for cable modems, set-top terminals and VoIP products. The line will be produced and sold by Conexant and Motorola's semiconductor division to Motorola's broadband communications division, the companies report.
The multiyear agreement is intended to expand Motorola's broadband market and allow it to meet future feature requirements, Motorola says.