Marvell Buys Intel XScale Division for $600M
June 27, 2006 12:40 PM
comment(s) - last by
Intel says it wants to focus on other areas of its business
Intel announced today that it will be selling its Communications and Applications Processor business over to Marvell for $600M USD. The business unit at Intel is credited with developing such processors as Intel's XScale series of mobile processors including the PXA9xx family used in RIM's Blackberry 8700 as well as other processors that are used in a wide variety of handhelds. "In recent years, Intel has made significant progress and won major customers with this business," said Sean Maloney, Intel's executive vice president and general manager of the Mobility Group.
Both Marvell and Intel say that while the transaction will take roughly four months to complete, customers should not expect any delays or supply problems during or after this time. Intel will continue to manufacture the products until Marvell can find a suitable manufacturer. Intel's Communications and Applications Processor business holds roughly 1,400 employees and has been a very successful operation for Intel over the last several years. Its products have been used in many handhelds from ASUS, Dell, HP, Motorola, HTC, Palm, among others.
According to Intel's press release
"Intel currently intends to receive the entire purchase price in cash. However, Intel has the option to take up to $100 million of the $600 million purchase price in Marvell common stock. Upon closing, Marvell may record a one-time charge for purchased in-process research and development expenses."
2006 has been a year of restructuring for Intel. The company made several announcements this year about the
reorganization of its memory business
. Intel told the press that its NOR memory technology was under examination but promised no layoffs. Intel also announced a deal earlier in the year to jointly develop NAND flash memory with Micron and launched a
joint venture called IM Flash Technologies LLC
. Intel says that the deal with Marvell will not impact other business areas that focus on the mobile market. Some of Intel's other products use ARM-based technology that Intel previously licensed and the company reassures customers that interruptions will not occur.
The company also states "This planned sale does not impact the ability of other Intel businesses in the networking and storage market segments to continue to use ARM-based, Intel XScale processors. Those Intel businesses will be able to continue licensing chip designs directly from ARM Holdings PLC and modifying the designs for their needs."
Interestingly, earlier this month AMD made a similar announcement to spin off its Alchemy division which produces processors for the hand held market. AMD's Alchemy processors are MIPS based and the
division was transferred to
This article is over a month old, voting and posting comments is disabled
RE: Someone know something I don't?
6/27/2006 1:29:29 PM
The power level is certainly getting low enough where x86 processors could make it in the embedded market. I wouldn't mind a PDA with an x86 processor, a stripped down version of XP, and a 2GB flash harddrive, it'd make PDAs somewhat useful.
RE: Someone know something I don't?
6/27/2006 1:31:23 PM
These things run on milliwatts -- x86 processors are just hitting the single Watt level. However, I bet with some fine tweaking an x86 processor could easily get down to this level.
"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
AMD Spins Off Alchemy CPU, Opens Door for AMD Co-Processors
June 14, 2006, 12:04 AM
Intel Reorganizes NOR Flash Division But Promises No Lay-offs
May 12, 2006, 9:30 AM
Micron and Intel Agree to Put in More than $3.8B in Flash Technology
February 27, 2006, 8:14 PM
Google's Gleaming Glass HQ Gets Mountain View Snub, LinkedIn Gets the Love
May 7, 2015, 6:58 AM
Tech's Tax Day Fortunate Few: Qualcomm, Xerox, GE, et al. Pay Little or No Taxes
April 15, 2015, 11:30 AM
LinkNYC Terminals to Blanket New York City With Free WiFi, Free Calls, and Ads
November 17, 2014, 6:50 PM
Microsoft is Open-Sourcing Most of .NET, Adding OS X and Linux Support
November 12, 2014, 8:27 PM
Home Depot Lost 53 Million Emails, Blames Windows, Buys Execs New Macs
November 9, 2014, 5:00 PM
Former NSA Lawyer: If Google, Apple Encrypt User Data, They’ll Wither on the Vine Like Blackberry
November 6, 2014, 12:15 PM
Most Popular Articles
America's Largest Cable Company, Comcast, Sees Internet Subscriptions Pass TV
May 4, 2015, 2:46 PM
Don't Spy on Me: Senate Pushes Obama's PATRIOT Act Renewal Bid to the Brink
May 25, 2015, 8:21 PM
Buzzfeed, NatGeo, NBC, and NYT Pay to Push Stories to Your Facebook Feed
May 13, 2015, 4:31 PM
Chromebooks Expected to See Sales Grow 26 Percent to 7.3 Million Units This Year
May 22, 2015, 1:26 PM
Report: Ninth Generation iPhones Get Force Touch
May 26, 2015, 2:08 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information