Feeds

Intel nabs mobile GPS business of moribund ST-Ericsson

Hemorrhaging slowed but not halted

Mobile application security vulnerability report

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. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.