- Associated Press - Monday, August 16, 2010

SANTA CLARA, CALIF. (AP) - 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 U.S. 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.