That's good news for STMicroelectronics, Garmin, who will be able to reduce production costs of the lower-end models and apply greater pricing pressure on SiRF. But it's not such good news for SiRF, whose stock price has been taking a beating lately.

Assuming Garmin replaces SiRF on about 25% of their models, that could translate into roughly $20 million in sales for STM (and $20 million less for SiRF). SiRF's probably not sweating STM too much, considering that SiRF still enjoys close to 90% market dominance in an industry that is seeing more than 100% year on year growth.