Intel invests $1.5bn for stake in Chinese semiconductor firms
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Intel has signalled an increased focus on China with the signing of several agreements with state owned Tsinghua Unigroup. The deals, designed to broaden the adoption of Intel based mobile devices in China, will also see Intel investing about $1.5billion for a 20% stake in a new holding company which will own Spreadtrum Communications and RDA Microelectronics.
Spreadtrum and RDA, already part of Tsinghua Unigroup, are fabless Chinese semiconductor companies developing mobile chipset platforms for smart phones, feature phones and other consumer electronics products.
"China is now the largest market for smartphones and has the largest number of internet users in the world," said Brian Krzanich, Intel's CEO. "This partnership will also enhance our ability to support a wider range of mobile customers in China and the rest of the world by delivering more quickly a broader portfolio of Intel architecture and communications technology solutions."
Zhao Weiguo, chairman and president of Tsinghua Unigroup, added: "The strategic collaboration between Tsinghua Unigroup and Intel ranges from design and development to marketing and equity investments, which demonstrate Intel's confidence in the Chinese market and strong commitment to Chinese semiconductor industry."
Under the terms of the agreement, Spreadtrum will jointly create and sell a family of Intel Architecture based SoCs, with the first products becoming available in the second half of 2015.
Spreadtrum's CEO Dr Leo Li noted: "The adoption of Intel's architecture will enable us to accelerate the development of our portfolio, benefiting handset makers addressing both China and the global market."
RDA claims its core competency is the design of highly integrated, high-performance RF and mixed signal SoCs. Its portfolio ranges from baseband processors and RF front ends to LNB satellite down converters.
