Intel May Be Selling Off XScale Unit

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The semi-conductor industry is abuzz lately with rumors that Intel might be looking to sell off its XScale unit.

The XScale line is a family of processors that are used in a wide variety of PDAs, smartphones, music players, and many other mobile devices. For example, Dell, HP, and Palm all have handhelds with Intel chips.

Recent rumors have it that Intel is looking to get rid of its mobile processor line to concentrate more on their core businesses: processors for PCs and laptops.  

Intel has declined to speak about this story, and that is leaving a lot of web sites humming with guesses about who the possible buyer could be.

Is This a Good Idea?

Intel has made it clear that it isn’t making as much money in the handheld and smartphone market as it wishes. It’s cellular-wireless chips haven’t been able to compete well with ones from Motorola, for example.

Still, some analysts  have pointed out that Intel can learn valuable information by making mobile processors that can be used in its other product lines.

 

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