Motorola, the world's second-biggest handset maker, said on Monday it would develop advanced mobile phones using chips from Texas Instruments, the No. 1 wireless chip maker.
Motorola said it would use customized chips from TI for upcoming third-generation (3G) high-speed wireless handsets that would be available as early as 2008.
Analysts said the deal would boost revenue at TI, which already sells Motorola chips for cheaper handsets but recently blamed its poor quarterly results on weak demand for more-costly phones that use multiple TI chips.
Motorola said TI would also supply chips for handsets based on WiMax, an emerging high-speed wireless technology, and these handsets would also be available in 2008.
Motorola, which had mostly used chips from Freescale Semiconductor Inc., has been adding new suppliers including Qualcomm Inc. as well as TI.
Nokia , Motorola's main handset rival, is TI's biggest cell phone chip customer. TI's second-biggest chip customer is Ericsson.