Palm to Use Chips From Texas Instruments

Palm Inc. said it will use chips from Texas Instruments Inc. to power a new line of electronic organizers, bypassing semiconductor provider Motorola Inc.

Palm, based in Santa Clara, Calif., said it will put the chips in a line of more powerful hand-held computers that can handle complex tasks such as playing video clips and surfing the Internet. Motorola had been the sole provider of chips for Palm’s computers.

Palm shares fell 30 cents to $3.17 on Nasdaq. Texas Instruments slipped 18 cents to $30.17, and Motorola shares rose 1 cent to $16.27, both on the New York Stock Exchange.