Motorola inks Texas Instruments chip-supply pact

NEW YORK, Jan 29 (Reuters) Motorola Inc, the world's second-biggest handset maker, said on Monday it would develop advanced mobile phones using chips from Texas Instruments Inc.

the No. 1 wireless chip maker.

Motorola, which had mostly used chips from privately held Freescale Semiconductor Inc., has been adding new suppliers for advanced cell phone chips including Qualcomm Inc., as well as TI.

The cell phone maker said it would use customized chips from TI for upcoming third generation high-speed wireless handsets that would be available as early as 2008.

It said TI would also supply chips for handsets based on WiMax, an emerging high-speed wireless technology. It said these handsets would also be available in 2008.

Motorola had partly blamed a lack of availability of its current generation of high-speed cell phones for weak profits and sales in the fourth quarter.

Motorola's biggest handset rival Nokia is Texas Instruments' biggest cell phone chip customer.

REUTERS SBA DB2044