Intel flogs off mobile division for $600m

After weeks of speculation, Intel has announced it is to sell its communications and applications processor division to Marvell Technology Group for $600m.

The unit covers the chips Intel sells for PDAs and smart phones - including some models of RIM's BlackBerry device as well as the Motorola Q and the Palm Treo - and, according to Marvell, will allow the company to become a "long-term" mobility player.

Intel, on the other hand, maintains the unit is still "an attractive market opportunity" but said it shed the unit to concentrate on its core business and emerging standards such as WiMax.

The deal is expected to close within four or five months. After it has been finalised Intel will continue to manufacture the chips until Marvell is ready to take over production. Supply of chips is not expected to be disrupted.

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