Intel continues to trim itself down to core competencies

In another move that is part of the Intel reshuffling of priorities and personnel, the chip giant has cut a deal with Eicon Networks Corporation, with Eicon acquiring Intels' media and signaling business. The business unit contains roughly 600 employees and Intel said in a press release that it expects most of these employees to become full time employees at Eicon. Intel mentioned that it will continue to work with Eicon.

The media and signaling division at Intel was largely responsible for developing products that deal with voice and video communications, conferencing, VoIP and other IP products. Eicon CEO Nick Jensen said that "Eicon's and Intel's media and signaling products complement each other well. We expect this transition to extend our global reach with solutions for both traditional circuit switch communication technology and leading-edge IP platforms for both enterprises and service providers." According to the press release:

The acquisition is expected to allow Eicon to become a leading player in the media processing and signaling market segment. The sale will enable Intel to focus its investments on its core communications and embedded businesses, including Intel® Architecture and network processors, modular communications platforms and optical modules.

Previously, Intel agreed to sell its XScale division to Marvell for $600 million. The ongoing pattern of layoffs and division sales from Intel stays true to its commitment to refocus on its core competencies and this is important now more so than ever. With AMD and ATI now one company, Intel has a lot more to worry about in areas such as chipsets and portable devices. ATI also has a very strong presence in the home media market.

"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg
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