Santa Clara, California based tech company, Intel will soon be investing an undisclosed amount in Chinese-government affiliated mobile chipmaker, Spreadtrum Communications and RDA Microelectronics, both owned by Tsinghua Unigroup.
As per a Reuters report, the acquisition could be made through Tsinghua Unigroup, a government-affiliated private equity firm controlled by Tsinghua University in Beijing. Intel is expected to get 20 percent of Tsinghua Unigroup for USD 1.5 billion.
Intel had dominated the desktop, notebook, and server processor markets for long, but it was slow to position itself for the shift from the PC to the post-PC era, thus was overtaken by companies like Qualcomm and Nvidia. Intel lags behind these players in smartphones and tablets market, but now with this initiative, Intel want to catch up in smartphone chip industry.
Intel, under Chief Executive Brian Krzanich, had reached an agreement with Chinese mobile-internet ’System on a Chip’ (SoC) solution provider, Rockchip to make inexpensive tablet chips with Intel’s architecture and branding.
This year, the company’s stock has risen 32 percent, in part because of stabilization of demand for personal computers.
In April this year, Intel Corp. has entered into a strategic collaboration with CA based enterprise data management firm, Cloudera to enhance both Intel data center and Internet of Things (IoT) technology initiatives.Category Business Investments