By Don Clark
Intel Corp. is turning to a Chinese chip maker to help
accelerate its uphill push into tablet computers.
The Silicon Valley company on Tuesday said it would work with
Fuzhou Rockchip Electronics Co., better known as Rockchip, to
create Intel-branded chips for use in entry-level tablets running
Google Inc.'s Android operating system.
Both companies will sell the jointly developed mobile chips,
Intel said.
Intel's move is the latest sign it is willing to adopt unusual
tactics to catch up to competitors in a key market. The company
rarely makes chips that combine its own technology with circuitry
designed by others.
It had previously stated that the product line involved with the
Rockchip deal, dubbed SoFIA, would be produced at factories
operated by Taiwan Semiconductor Manufacturing Co.--a break from
Intel's tradition of using its own chip plants.
Intel, for decades the dominant supplier of chips for personal
computers, fell behind rivals using technology from ARM Holdings
PLC in tablets and smartphones. Rockchip up to now has only used
ARM technology in its own chips, grabbing a sizable niche in tablet
chips from larger rivals like Qualcomm Inc.
Brian Krzanich, who became Intel's chief executive a year ago,
has set a goal to get the company's technology into 40 million
tablets this year. The company last month said it had reached five
million in the first quarter.
The news comes amid signs of growing U.S.-China tensions,
sparked by events that include the U.S. Justice Department's
indictment of five officers in China's People's Liberation Army on
accusations they stole American corporate secrets.
Mr. Krzanich said he didn't expect recent events to affect the
relationship with Rockchip, which he said offered ties with many
customers in China as well as design expertise to quickly expand
Intel's road map of mobile chips.
"They are absolutely adding to our road map, but also adding to
the customer base," Mr. Krzanich said in a conference call
Tuesday.
SoFIA is the first Intel product to combine a processor, or
calculating engine, on the same piece of silicon with wireless
technology that it obtained by buying operations from Infineon
Technologies AG in 2010.
The chips to be developed as part of the partnership will use
Intel's low-end Atom processor along with 3G wireless capability.
Rockchip will contribute other technology, such as graphics
circuitry, Intel said.
Tablets in China are currently selling at prices ranging from
$75 to $150, noted Patrick Moorhead, an analyst with Moor Insights
& Strategy. By using Rockchip's design process, he said, Intel
can get new products to market faster at a lower cost.
"It can make an Intel solution look a lot more competitive," Mr.
Moorhead said.
Pricing for the expected products will be disclosed at a later
date, Intel said.
Write to Don Clark at don.clark@wsj.com
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