Microchip's Latest Buy Part Of Ongoing Drive For More Analog Tech Company Buying PowerSmart Microchip will get access to accurate battery gauges for devices like notebooks.(INTERNET & TECHNOLOGY)

Byline: JAMES DETAR

Microchip Technology Inc. is making a power play.

The company announced last month it's buying private firm PowerSmart Inc. PowerSmart makes chips that enable long battery life in devices like portable computers.

Microchip Chief Executive Steve Sanghi says PowerSmart will help his company gain a bigger toehold in the analog chip market.

The acquisition is one way Microchip's expanding its product line. "We buy key technologies and try to build them into a significant business," Sanghi said. "Now we're growing our analog business. We're doing a lot of things, some through acquisition and some through internal development."

Sanghi says battery gauges in today's PCs are accurate within a range of plus or minus 20%. That's not very accurate, and it creates huge problems. Anyone with a portable PC knows the sinking feeling of having to shut down when the battery indicator gets low.

"PowerSmart takes the accuracy to plus or minus 1%. If a battery was getting 2.5 to three hours use in a PC, it will get an extra hour or so with a SmartPower controller. That's extremely valuable," he said.