Intel to merge mobile and PC chips into one unit

Just the other day, we told you that thanks to subsidies paid to some Android tablet manufacturers, Intel's mobile chips division was staring at a two-year combined loss of $7 billion. Now, a report published on Tuesday night, says that Intel is planning on merging the mobile end of its chip business, with the stronger and more stable PC chip business.

Intel spokesman Chuck Mulloy said, "The lines are blurring between PCs, tablets, phablets and phones. The idea is to accelerate the implementation and create some efficiency so that we can move even faster." The combined unit will be run by Kirk Skaugen, who currently runs the PC chips division. The head of mobile chips, Hermann Eul, will stick around to help with the transition until the first quarter of 2015. At that time, Eul will be placed in a new position at Intel.

Intel is expected to ship 40 million processors for tablets this year. But thanks to the subsidies it is paying manufacturers to use its chips, the company is bleeding red ink. As a result, Intel is phasing out these payments at the same time that it is combining the mobile and PC chip businesses.

source: Bloomberg