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Intel sells Mobile chips unit to Marvell

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The largest chip maker in the world announced its intention to sell its division manufacturing chips for mobile phones to Marvell for $600 million in cash. Intel chips are used in some of the HTC and Blackberry smartphones, but given the strong competition from Texas Instruments, Qualcomm and Samsung, the company has decided to leave this business and concentrate on its core activities of manufacturing server and PC processors. Under the agreement, Intel will continue to manufacture the chips for up to two years, after which Marvell will have to find someone else. The sale will only include Intel's XScale processor for
Marvell is expected to retain the majority of the 1,400 people currently working in the Intel division.

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