Philips and Accton to merge wireless networking units

Koninklijke Philips Electronics and Taiwanese networking equipment maker Accton Technology are to create a joint-venture company...

Koninklijke Philips Electronics and Taiwanese networking equipment maker Accton Technology are to create a joint-venture company combining the wireless connectivity module units of both partners.

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

The company will also develop a product to bridge networks based on Powerline Communication, which uses 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.

The joint venture is expected to be established before the middle of the year It will be based in Taiwan, with expected initial annual revenue of around US$250m.

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