Intel acquisition method of Ericsson navigation chip business, continue to move in chip area

Intel new CEO Brian Krzanich took only 12 days, the company is under his lead, completed the acquisition.

the company announced today that they have acquired the stmicroelectronics Ericsson (st-ericsson) of the satellite navigation chip division. Stmicroelectronics Ericsson is a joint venture company, by the European chipmaker stmicroelectronics and Sweden Ericsson communications equipment company business together, each accounted for 50% of the shares. However, it’s the “parents” has been trying to save the money of the joint venture company.

though the acquisition conditions have not been disclosed, round method Ericsson said, after selling the unit, the company will be lifted “burn” $90 million a year. Stmicroelectronics Ericsson subordinates this department has been committed to provide GPS navigation systems and wireless phone chips. Is very conspicuous, stmicroelectronics and Ericsson this “cutting” is helpless. The company in 2013 Q1 results show that, the company operating a net loss of $158 million, the sales revenue of $256 million. Last month, stmicroelectronics has claimed, in view of the joint venture in the transition period, will invest $450 million to support its development.

the acquisition, will further increase the Intel market share in the field of mobile chips. Previously, the company had $1.4 billion deal to buy German chipmaker Infineon (Infineon). This two important acquisition, which Intel to mobile terminal chip market power. In addition, in competition with Qualcomm company (Qualcomm), it will also enhance the competitive power of Intel. Qualcomm has under its wireless chip business established a powerful GPS navigation chip division, and earnings have been very good.

a few days after Intel took over as CEO, Krzanich hired former vice President of apple Mike Bell (also is one of the executives of the company). Mike Bell, said in an April Dive Into Mobile after meeting, he will lead the Mobile devices have been team. It is obvious that the 130 people with different background to form a team, no doubt this is a severe test of the leader’s leadership. We are curious, members of the team if we can submit to the Bell. Update: I’m from Intel learned, a spokesman for the team of 130 people has become a mobile chip division subordinate departments, and the Bell’s successor, Herman Eul leadership.

although Intel’s worldwide PC and server chips on the market leader, but in the era of mobile Internet, it has been struggling. The advantage of Intel hopes to continue in the past has become smart phones and tablets on the market the biggest supplier of chips, but it was a disappointing performance in recent years. At present, Intel’s competitors in the field of mobile mainly includes: the ARM chip design company, qualcomm, Nvidia company (Nvidia), apple and so on.