Motorola Inc. said it acquired assets of two China-based communication equipment manufacturers to expand its share of the country's digital cable set-top box market.

The transaction is expected to help Motorola better serve the fast-growing Chinese digital cable-TV market, which the company forecasts will surge to a subscriber base of more than 165 million by 2016 from approximately 10 million as at the end of 2006.

Motorola paid an undisclosed amount for some digital cable set-top box assets of Zhejiang Dahua Digital Technology Co. Ltd. and Hangzhou Image Silicon. It did not provide further details related to the transaction.

The acquisitions, however, add Dahua Digital's low-cost manufacturing facilities to Motorola's operations, gives the company chipset solutions developed for the Chinese market and local research, sales and marketing resources.

More important, the acquisitions are seen helping Motorola forge a stronger supplier relationship with Dahua Digital, which in addition to making cable TV boxes is also one of China's leading cable-TV operators.

Motorola said it will integrate Dahua Digital into its Home and Networks Mobility division and keep the new business unit at its China base in Hangzhou.

By: DocMemory
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