
Intel has announced, as predicted by various analysts and hinted at by Intel itself, that it is to
divest itself of its Communications Processor division - the part that develops its Xscale processor range. The purchaser is Marvell who paid $600M for it, although precisely what they have purchased is somewhat unclear.
They have clearly purchased the chips that power handheld devices from RIM and Handspring (Treo) and seem to have inherited some 1400 employees, but there are details that need a closer look.
The register notes that this seems to be confirmation that Intel is going for an x86 only strategy for handheld devices:
In August 2005, Intel CEO Paul Otellini forecast for the 2010 timeframe the availability of a 0.5W CPU capable of running Windows Vista. As we noted at the time, that announcement effectively pulled the rug from under the feet of the XScale operation. The schedule Otellini mentioned provides plenty of time for interested parties to stick with ARM chips for a few years then migrate over to x86. Intel will no doubt be dangling the carrots of its chips' energy efficiency, processing power and multimedia friendliness to encourage them to do so.
However while this makes some sort of sense it is clear that Intel is hedging its bets to some extent, since the press release states:
This planned sale does not impact the ability of other Intel businesses in the networking and storage market segments to continue to use ARM*-based, Intel XScale processors. Those Intel businesses will be able to continue licensing chip designs directly from ARM Holdings PLC and modifying the designs for their needs.
This is fascinating once you look at the background: Intel inherited from its pruchase of the StrongARM business of DEC an ARM architecture license and this is what Intel has used in the development its newer Xscale processors. If Intel is moving to an x86 only world why is it still retaining the rights to ARM processors? Perhaps more interestingly, who now owns the ARM architecture license? is it Intel or Marvell? If it is Intel then surely Marvell is going to have to pay ARM a significant chunk of money because I don't think it is currently an architecture licensee.
The related oddity is that Marvell is better known for its networking chips, so it would have made more sense for Marvell to have bought Intel's Network Processor chip business, but the implication is that Intel still retains a network chip business so what exactly did Marvell buy?