Intel apparently doesn’t want to fight the battle over processors for handheld devices. They are already fighting in a computer segment which is seeing slowing growth, so they have bailed out of the mobile sector by selling the division to Marvell Technology Group for $600 million. Included in the sale is the Intel XScale technology, which is the basis for both the BlackBerry and Treo. There are 1,400 people employed by the division, and most of them will reportedly be retained.
For Intel, the sale allows them to focus on more profitable segments, like chips for PCs and servers. It will also help them pay for new factories to boost output. Intel has faced increased competition and decreasing market share in their core business the past few years. Marvell, which already has 2,200 employees, sells chips for data storage, communications and networking products. Their newly purchased division produces sales of about $300 million per year, which is less than 1% of Intel’s total revenue.