Feeds

Intel nabs mobile GPS business of moribund ST-Ericsson

Hemorrhaging slowed but not halted

Secure remote control for conventional and virtual desktops

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. ®

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.