SiRF, which designs the popular standalone GPS systems like SiRF III, which found in just about every GPS device, has been bought out by CSR. Who’s CSR, you ask? They’re “…a global leader in the Bluetooth connectivity business with core expertise in multiple connectivity technologies.”

So basically SiRF designs GPS technology and CSR makes multifunction chips. Seems to make sense and an obvious response to such companies as Qualcomm that have been making “all in one” MSM solutions for years now and which also have the very successful GPSOne competitor to SiRF III. (Read up on GPS vs. aGPS here)

The big question of course is what does this mean for standalone GPS systems and mobile phones? SiRFIII has been demonstrated to be a more accurate system than aGPS, yet due to costs and Qualcomm’s near stranglehold on much of the mobile market, they have been mostly sidelined. However, with companies like Palm turning to Texas Instruments for their Pre, the resurgence of Marvel’s XScale chips, and now nVidia entering the scene, this new SiRF/CSR hybrid may stand a better chance of offering an alternative and superior solution to consumers.

We’ll be watching guys to see what you can come up with.