With its move to acquire the LSI Axxia networking chip unit from Avago late last week, Intel's Internet of Things (IoT) and data center strategies are clicking into place.
Though the "Godfather of Semiconductors" has taken steps to better articulate its IoT and networking strategies over the last year or so, Intel Corp. (Nasdaq: INTC) was still perceived as a laggard, especially in the mobile devices market. Most of the device manufacturer strata has been adopting ARM processors, but Intel has been clinging to its x86 processors, supplying them mostly to upstart manufacturers. (See 2014: Intel's Year of Living Wirelessly?)
The Axxia Networking Business will cost Intel $650 million, but finally help it with its lack of ARM strength, providing it with processors for wireless gear, as well as for SDN-enabled gear for data center and enterprise deployments at a time when makers of routers and switches are trying to future-proof their products for the SDN era.
The deal also continues Avago Technologies Pte. 's gradual shedding of LSI units it doesn't care to focus on in favor of the storage chip assets it acquired when it bought LSI. For LSI's part, it had aggressively invested in Axxia's ARM capabilities and, since 2012, expanded Axxia into mobile equipment, the cloud and data center markets. (See Avago to Buy LSI for $6.6B and LSI Pushes Into Cloud.)
What LSI doesn't care for, Intel will gladly take off its hands. The chip giant was not necessarily starting to look like a dinosaur, but the fast-moving mobile and data center sectors were mobbing on regardless of whether Intel had an inside angle on them or not.
- Intel Confirms Mindspeed Wireless Buyout
- LSI Expands ARM Relationship
- Intel Targets Networking Gear
- Intel, Others Form Another IoT Alliance
- Intel Wants to Light Up the IoT Market
— Dan O'Shea, Managing Editor, Light Reading