Intel announced today that it is going to sell its division that makes XScale processors for mobile devices to Marvell for $600 million.
The company said it was making this move so it can concentrate more on its core businesses: processors for PCs and laptops. It also wants to be able to put more effort into Wi-Fi and WiMAX broadband wireless technologies.
As a result of this agreement, about 1,400 Intel employees — involved in a variety of functions, including engineering, product testing/validation, operations and marketing –are expected to transfer to Marvell.
This deal should close in four or five months and, of course, is subject to regulatory review.
What’s an XScale?
The XScale line is a family of processors that are used in a wide variety of handhelds, smartphones, music players, and many other mobile devices.
For example, Research in Motion’s Blackberry 8700 uses an XScale processor, and Palm’s Treo line and the Motorola Q do, too.
As such, this deal has the potential to have a significant effect on the handheld and smartphone market.
More information is available on Intel’s web site.