Intel sells off its XScale processor unit

[Alexander Turcic]

For $600m in cash, chip maker Marvell Technology will acquire Intel's underperforming XScale business. XScale processors are commonly used in handheld gadgets, including most current Windows Mobile devices, the RIM BlackBerry 8700 and the Motorola Q. From the press release:

After the close of the transaction, Intel intends to continue manufacturing products currently sold by this business for handheld devices and embedded applications, and to manufacture products that are being designed into upcoming devices. This arrangement is expected to continue while Marvell arranges other manufacturing resources. Intel and Marvell do not anticipate disruptions in the supply of these products due to this planned sale.

[via The Street]

[Bob Russell]

So, I wonder. Does this mean Intel is getting out of the handheld processor business, or are they just getting out of the current XScale designs?

And does this mean that UMPCs will be migrating to the cheaper AMD chips?

[Alexander Turcic]

From TG Daily:

As Intel spokesperson Robert I. Manetta told TG Daily this morning, Marvell will acquire the rights to produce XScale communications processors from Intel, which itself licenses the technology from UK-based ARM Holdings. Specifically, Marvell acquires production rights for XScale in cellular communications and handheld devices; Intel will continue to be able to utilize XScale for other purposes. So XScale was not sold outright to Marvell - it wasn't Intel's technology to sell. However, both Marvell and Intel may continue to conduct research and develop new products, in their respective coverage areas, based on XScale. Marvell is not acquiring Intel's research facilities - just its production resources, which include 1,400 employees. Marvell may or may not, at its discretion, continue to use the XScale trademark, which will continue to be owned by Intel.