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Motorola unveils cell chip
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November 1, 1999: 11:46 a.m. ET
New processor lets wireless phones operate from anywhere in world
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NEW YORK (CNNfn) - Motorola Inc. unveiled a new chip Monday that will enable cellular phones to operate from any location in the world, regardless of the wireless platform in place.
Wall Street greeted the news positively, sending shares up 3-13/16 to 101-1/8 in morning trading.
The DSP5690 chip, which can execute all major existing wireless standards, can also support satellite-based products.
Currently the U.S. has several wireless standards, so users may need several cell phones depending on their location.
"Manufacturers can now standardize their manufacturing around one smart solution, regardless of the market on which they are currently focused," said Mario Rivas, vice president and general manager of Motorola's Wireless division. "This makes it easier for them to scale their production for different standards and different areas of the world as needed."
Stock watchers believe the chip debut spells profits for the company.
"This news is especially important when in the next few years standards will converge," said Alex Cena, an analyst at Salomon Smith Barney.
The DSP56690 also supports Internet technologies. Motorola said the chip can employ various applications and software, including Sun Microsystems' Java programming language, and will feature microbrowsers.
The new chip is part of Motorola's (MOT) Digital DNA product line for wireless systems that integrates a baseband processor with a microcontroller. The chip is supported by a RAM device, the DSP56670.
A wireless standard known as CDMA, or code division multiple accessor, is also part of the new chip's technology. That translates into good news for Qualcomm Inc., (QCOM), up 5-1/16 to 227-3/16 in Monday morning trading. While sometimes viewed as a Motorola competitor, the company actually receives royalties on CDMA technologies, Cena said.
"The more successful Motorola is, the more they owe Qualcomm," Cena said.
Samples of the chip and a companion development board will be available in limited supply later this year. Full rollout is slated for the first quarter of 2000. 
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Motorola
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