Intel to buy TI cable modem chip business

CALIFORNIA: Intel says it's buying a Texas Instruments unit that makes cable modem chips, which it intends to combine with its own processors for smarter modems and cable set-top boxes.

The companies did not reveal the terms of the deal in the Monday announcement.

Dallas-based Texas Instruments Inc has supplied Motorola, Arris and Cisco's Scientific Atlanta unit with chips for cable modems, representing much of the US market.

Santa Clara-based Intel Corp says all employees of the TI unit have been offered positions. It expects the deal to close in the fourth quarter.