Feeds

Intel pays Creative $50m for ZiiLabs GPU licence, people

Small change for one firm, lifeblood for the other

Intelligent flash storage arrays

Creative Labs is to all sell parts of its graphics chip wing, ZiiLabs, to Intel for $50 million (£31.4 million).

The deal involves a $30 million payment for “certain engineering resources and assets” from ZiiLabs' UK operation and a further $2 million for “the licensing of certain technologies... relating to ZiiLabs' high performance GPU technology”.

Singapore-based Creative stressed that ZiiLabs will remain one of its wholly owned subsidiaries and that it is keeping hold of the ARM-based ZMS application processors and StemCell media chips developed by ZiiLabs, which it will continue to sell and support.

It said that “it will be more cost-effective for Creative to outsource to third-party contract chip-layout houses on future advanced chips for its products”, which suggests that it’s its in-house resources of this kind - what Creative calls "a design entity engaged in... the development of various silicon solutions" - that have been sold to Intel.

So all this is more about Intel acquiring chip development expertise than buying into the ARM world. For the chip giant, $50 million is small change, but it's lifeblood for Creative. It has been shedding the stuff for some years - it lost $4.5 million in the three months to 30 September 2012, its most recently completed quarter - now as demand for its once-famous SoundBlaster technology and its media players has dried up.

Increasingly, Creative has turned to licensing its intellectual property portfolio in a bid to make ends meet.

ZiiLabs was established in 2009 out of 3DLabs, a graphics chip pioneer formed in 1994 through a management buyout DuPont’s DuPont Pixel subsidiary. 3DLabs was acquired by Creative in 2002. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Space Commanders rebel as Elite:Dangerous kills offline mode
Frontier cops an epic kicking in its own forums ahead of December revival
Intel's LAME DUCK mobile chips gobbled by CASH COW
Chipzilla won't have money-losing mobe unit to kick about anymore
First in line to order a Nexus 6? AT&T has a BRICK for you
Black Screen of Death plagues early Google-mobe batch
Ford's B-Max: Fiesta-based runaround that goes THUNK
... when you close the slidey doors, that is ...
Disturbance in the force lets phones detect gestures with Wi-Fi
These are the movement detection devices you're looking for
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?