Marvell Technology to Buy Intel’s Mobile Computing Unit

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Marvell Technology to Buy Intel’s Mobile Computing Unit

11:00 am on June 29, 2006 | Category: Business, Wireless Technology, Corporate

In its continued effort to consolidate operations and face competition in the computer chip market, Intel has announced a deal to sell its handheld chipmaking division for $600 million.

Marvell Technology Group has agreed to purchase the unit, which makes chips for BlackBerry and Treo handheld devices, using Intel’s XScale technology. Marvell expects to retain the “vast majority” of the division’s 1400 employees after taking possession.

The sale of Intel’s mobile computing unit is largely due to the chipmaker’s concerns about declining market share and profit in its core market. Intel’s market share in the computer chip market declined by 5.3 percentage points in 2005, causing this year’s first quarter profit to plunge by 38%.