Intel to Sell Off XScale Division?
Rumor: The San Jose Mercury News is reporting that Intel's XScale mobile processor division is up for sale. Intel XScale processors are the main CPU in all current Palm handhelds and smartphones and many other mobile devices and PDAs. The report claims that Intel is looking to shed some of its product lines in a strategic business reevaluation.
The Mercury News article states:
Groups for sale include: [...] Intel's Xscale business, which includes applications processors for cell phones and chips for BlackBerrys, smart cell phones, handheld computers and portable media players. That business generated approximately $250 million in sales last year, according to sources who saw documents on the business.
Both the communications processor and applications processor businesses, which are being shopped as a single group, are losing money. Intel can get a tax write-off for selling the businesses.
Intel XScale processors are widely used in the smartphone and PDA industries. XScale chips power all Palm devices, many HTC Windows Mobile units and some of the latest RIM models.
Intel has already pre-announced its next generation mobile processors, code named Monahans. The new chips are expected to provide five times more performance within the next few years, while consuming less energy than previous Intel-based platforms. Monahans chips are expected to be released to manufactures this summer.
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