Motorola Inc. (Nasdaq: MOT) said it has renewed its agreement with Freescale Semiconductor Inc. as its preferred supplier of 2G and 3G chipset platforms through 2009.
Motorola, the world's second largest cell phone maker behind Nokia, said Thursday that the privately held Freescale will provide current and next generation technologies across a wide-range of the company's phones. Financial terms weren't disclosed.
As a preferred supplier, we expect Freescale to help drive 2G and 3G innovations that will transform the mobile communications experience for wireless operators and consumers, said Ron Garriques in a statement, President of Motorola's Mobile Devices business.
Motorola will receive baseband, power management, RF transceivers and power amplifier technologies for incorporation across a variety of different handsets.
Additionally, Motorola said it expects Freescale to deliver several new chipset solutions for next-generation EDGE, 3G and multimedia handsets.
The announcement comes a little over a week after Motorola said it planned to expand its business with Freescale's competitor Texas Instruments Inc.
Shares of Motorola were down 0.15 percent, or $0.03 to $19.88 in late afternoon trading on the New York Stock Exchange.