Intel Kills Off Its Smartphone Chip Lines

As part of its restructuring program, Intel has canceled its smartphone chip programs.

April 30, 2016

2 Min Read
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.

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