Feeds

Intel nabs mobile GPS business of moribund ST-Ericsson

Hemorrhaging slowed but not halted

Top 5 reasons to deploy VMware with Tegile

Seeking to bolster its position in the mobile chip business, Intel has snapped up the GPS mobile navigation division of failed semiconductor partnership ST-Ericsson for an undisclosed sum.

ST-Ercisson announced the sale on Tuesday without naming the buyer, but Reuters later reported that an Intel spokesperson confirmed Chipzilla's involvement.

The sale gives ST-Ericsson a quick cash infusion while allowing it to avoid various restructuring costs, reducing its immediate cash needs by around $90m.

The ST-Ericsson partnership was formed in 2008 between Swedish telecom equipment maker Ericsson and French-Italian semiconductor firm STMicroelectronics, making the combined venture the second-largest mobile chipmaker after Qualcomm.

But size isn't everything, and ST-Ericsson began posting losses almost immediately. It staggered on for five more unprofitable years before finally announcing in March of this year that it would dissolve, returning its core divisions to their respective founders.

On Tuesday, ST-Ericsson president and CEO Carlo Ferro hastened to put a brave face on the sale of the GPS division to Intel.

"Today's transaction validates the leading innovation developed by ST-Ericsson in mobile navigation systems and marks a further important step towards the execution of our shareholders' decision to exit from ST-Ericsson," Ferro said in a canned statement.

The transaction will transfer all of ST-Ericsson's navigation-related intellectual property to Intel, which is also expected to take on the company's team of 130 GPS-related employees based in the UK, Bangalore, and Singapore.

That's more than can be said for approximately 1,600 ST-Ericsson employees who are expected to get the axe as the partnership winds down operations this year.

Intel's purchase of ST-Ericsson's GPS division is subject to regulatory approval but is expected to close by August 2013. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
BT said to have pulled patent-infringing boxes from DSL network
Take your license demand and stick it in your ASSIA
Right to be forgotten should apply to Google.com too: EU
And hey - no need to tell the website you've de-listed. That'll make it easier ...
prev story

Whitepapers

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.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
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.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.