Intel Kills Off Its Smartphone Chip Lines
As part of its latest strategic revamp, Intel Corp. (Nasdaq: INTC) has called time on its 3G and 4G system-on-a-chip (SoC) lines of business and will instead focus its wireless connectivity attention on Internet of Things (IoT) and 5G developments.
Intel has been investing heavily, and suffering significant financial losses, in recent years as it played catch-up in the smartphone chip sector. Intel was late to the game and subsequently lost out to rival ARM Ltd. , which dominates the smartphone processor market and counts Apple, Samsung and Qualcomm as customers.
Now, though, CEO Brian Krzanich has decided it's time for Intel to revamp its strategy, make some cuts and focusing on markets where it feels it can lead the way. To that end, Intel is shrinking its workforce, focusing on data center/cloud, IoT and 5G, and canceling SoFIA, the 3G and LTE handset SoC program that has already developed commercial products, and Broxton, a newer program focused on SoC products for smartphones and tablets.
Confirmation that Intel has called time on SoFIA and Broxton with immediate effect was given to the AnandTech website following a report by analyst Patrick Moorhead.
Intel had been working on SoFIA for years but Krzanich has now pulled the plug. Despite that decision, it seems the CEO has managed to hold on to wireless group head Aicha Evans, according to Bloomberg. Evans is believed to have handed in her resignation but it would appear Krzanich has persuaded her to stay.
Related posts:
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- Intel's Krzanich: It's the Virtuous Circle, Stupid
- Mobile Losses of $4.2B Dent Intel's Profits
- Intel Chief Defends Huge Mobile Losses
- 2014: Intel's Year of Living Wirelessly?
— Ray Le Maistre, 
, Editor-in-Chief, Light Reading
Intel is too focused on x86 and not willing to deviate from it. They had an ARM line of processors in the past (Xscale) but sold that off sometime ago. The real issue is that the x86 is a power hungry processor design and Intel needs to use die shrinks to help offset that. On the baseband front, die shrinking doesn't work out all that well. Back when TI was still in the game with the OMAP line, they ran into die shrink issues that certain components did not fare well on die shrinks any longer.
Competition has forced Intel out and now squeezing Qualcomm.
Using ARM is just easier for many manufacturers than to have Android builds for ARM and x86.