Menu
Intel investing $US1.5 billion in two Chinese chip firms

Intel investing $US1.5 billion in two Chinese chip firms

Intel is targeting China's booming mobile market

Intel is investing 9 billion yuan ($US1.5 billion) in two Chinese chip companies with an eye to boosting its presence in the country's booming mobile phone market.

The two fabless semiconductor companies develop mobile chipset platforms for smartphones, feature phones and other consumer electronics products, which support 2G, 3G and 4G wireless communications standards, Intel said Friday.

The U.S. chipmaker will acquire a minority stake of about 20 percent in a holding company which will own the chip firms - Spreadtrum Communications and RDA Microelectronics.

The two chip companies have links to the state. The holding company, in which Intel is investing, is being set up under Tsinghua Unigroup, an operating subsidiary of Tsinghua Holdings, which is a solely state-owned company funded by Tsinghua University in China. Tsinghua Unigroup said in July it had acquired RDA for $907 million.

The agreement with Tsinghua Unigroup involves the design and selling of Intel architecture-based system-on-chips (SoCs). The initial products will be available in the second half of next year.

Intel CEO, Brian Krzanich, said in a statement that China is now the largest consumption market for smartphones and has the largest number of Internet users in the world. "This partnership will also enhance our ability to support a wider range of mobile customers in China and the rest of the world by more quickly delivering a broader portfolio of Intel architecture and communications technology solutions."

Intel's rival Qualcomm is being investigated in the country. The country's National Reform and Development Commission started investigating the company in November following industry complaints that the company has been overcharging its clients to use its patents.

The investment by Intel is subject to regulatory approvals and other closing conditions and is expected to close by early next year, Intel said.

Intel has been making strategic moves to expand its presence in China. In May it tied with Rockchip in Fuzhou to develop an Intel-branded mobile SoC platform. The quad-core platform is being built around an Intel Atom processor core integrated with Intel's 3G modem technology. In February, its venture capital arm, Intel Capital, invested in three Chinese cloud providers and has shown interest in local companies that make components for wearables.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags business issuesintelprocessorsinvestmentsComponents

Featured

Slideshows

Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Show Comments