Intel Discontinues Some Chips for Mobile Devices
April 29 2016 - 8:29PM
Dow Jones News
By Don Clark
Intel Corp. is discontinuing some of its chips for mobile
devices, the latest sign of a recent strategy shift to focus on
fields where it is more likely to make money.
The Silicon Valley company no longer plans to sell three
products in a line of multifunction chips called SoFIA that target
smartphones with a combination of cellular modem and processor
functions. Intel also won't sell a version of its Atom processor
line, code-named Broxton, that was aimed at tablet computers.
Kathryn Gill, an Intel spokeswoman, on Friday confirmed the
changes, which were first reported in an article by semiconductor
market analyst Patrick Moorhead on the Forbes website.
Intel has tried for years, and mostly failed, to gain a major
foothold in chips for smartphones and tablets. At the same time, it
has suffered from a continuing decline in the personal computer
business, its largest source of revenue.
The company on April 19 announced plans to cut 12,000 jobs, or
11% of its workforce, as part of an effort to shift resources to
chips for server systems and other businesses where revenue growth
is more likely.
Chief Executive Brian Krzanich followed up on Monday with a blog
post that emphasized his focus on products for the data center,
memory chips, programmable chips known as FPGA and segments of the
market known as the Internet of Things.
Intel's mobile efforts have been hampered by delays in matching
companies like Qualcomm Inc. in introducing new wireless
technology. Two of the canceled SoFIA models used the
fourth-generation cellular technology called LTE, while the other
used older 3G technology.
"By the time that those hit the market, they weren't competitive
as they needed to be to sell them at the prices they wanted," Mr.
Moorhead said.
Mr. Krzanich emphasized the company would continue to develop
products to try to lead the industry's transition to 5G
technology.
"Our connectivity strategy includes increased investment in
wired and wireless communications technology for connecting all
things, devices and people to the cloud and to power the
communications infrastructure behind it," Ms. Gill said. "We
re-evaluated projects to better align to this strategy."
Some of the SoFIA products were being produced under alliances
with Chinese chip companies Fuzhou Rockchip Electronics Co. and
Spreadtrum Communications Inc.; Ms. Gill said those companies
remain "valuable partners."
But she added that Intel's strategy requires "developing
solutions at Intel as well as with key partners."
Write to Don Clark at don.clark@wsj.com
(END) Dow Jones Newswires
April 29, 2016 20:14 ET (00:14 GMT)
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