PETALUMA -- Optical networking chip maker Teknovus was acquired by semiconductor leader Broadcom (NASDAQ: BRCM) for $123 million in cash, it was announced today.

Founded in 2002 with seed investment from semiconductor company NEC, Teknovus sells most of its video-over-fiber-enabling EPON chipsets and software to carriers overseas, particularly in Japan, China, and Korea. The technology allows carriers to offer pay TV and video-on-demand.

[caption id="attachment_18041" align="alignleft" width="150" caption="An assortment of Teknovus computer chips. (click to enlarge; courtesy of Teknovus)"][/caption]

"Teknovus' products will add a key element to our existing service provider offerings, including switching, DSL, gigabyte passive optical networks and cable solutions," said Martin Lund, senior vice president and general manager of Irvine-based Broadcom.

Teknovus has 65 employees. It has sales, design and support centers in Tokyo, Seoul, Beijing, Shanghai, Hong Kong, San Jose and Boston.