Chipmakers Putting GPS On the Radar

SAN FRANCISCO -- Navigation devices are the hot gift this holiday season.

And the components that comprise the heart of the gizmos are also at the top of wish lists for deal-hungry chipmakers.

Last Friday, NXP Semiconductor announced its purchase of GloNav, a Newport Beach, Calif., maker of global positioning satellite chips, for $85 million in cash, with another $25 million tied to performance milestones over the next two years.

The deal comes a week after Atheros(ATHR Quote - Cramer on ATHR - Stock Picks) snatched GPS chip firm u-Nav for $54 million.

In June, Broadcom(BRCM Quote - Cramer on BRCM - Stock Picks) acquired Global Locate for $146 million.

As consumer electronic devices add a staggering array of features, semiconductor firms see GPS chips as one more bridge to new customers. As in any arms race, the fear of missing out on the latest technology seems to be driving the GPS frenzy.

Atheros finance chief Jack Lazar reckons that more buyers are likely shopping around for the five to 10 other independent GPS chip firms out there.

"I do think there's probably a couple more that get picked up," Lazar says.

Sirf Technology(SIRF Quote - Cramer on SIRF - Stock Picks) is the most-well known standalone GPS chipmaker, although the company's $1.5 billion market cap makes it significantly more expensive than some of the recently acquired companies in the sector.

There's also a handful of private GPS firms, such as San Francisco's eRide, and Nemerix, based in Switzerland.

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