infoTECH Feature

September 30, 2014

Intel Collaborates with Tsinghua Unigroup; Invests $1.5 Billion in Semiconductor Business

Semiconductor chip maker Intel (News - Alert) Corporation recently signed a series of agreements with Chinese mobile chip company Tsinghua Unigroup.

Tsinghua Unigroup is a company that develops wireless chipsets for smartphones through a pair of subsidiaries - RDA and Spreadtrum Communications (News - Alert), chip designers in China. The synergies between the companies are believed to significantly help Tsinghua Unigroup fortify its position global market of mobile chips.

Intel and Tsinghua Unigroup will collaborate to make mobile chips based on Intel's architecture.  The strategic collaboration between Tsinghua Unigroup and Intel is set to range from design and development to marketing and equity investments.

CEO at Intel, Brian Krzanich said in a statement that the partnership would help Intel to quickly deliver a broader portfolio of Intel architecture and communications technology solutions and enhance the company’s ability to support a wider range of mobile customers in China and the rest of the world.

Intel also confirmed its investment of $1.5 billion in the Chinese chipmaker. The deal buys Intel a 20 percent stake in Tsinghua Unigroup, which will own Spreadtrum Communications and RDA Microelectronics. The deal is subject to regulatory approvals and other closing conditions.

China's Ministry of Industry and Information Technology is gearing up to form a globally competitive semiconductor industry. The government announced its plan earlier to invest $5 billion into the sector.

Zhao Weiguo, chairman and president of Tsinghua Unigroup, said in a statement that the partnership will accelerate the technology development and further strengthen the competitiveness and market position of Chinese semiconductor companies.

Also, the agreement will now allow Spreadtrum Communications to jointly create and sell a family of Intel Architecture-based system-on-chips.

The companies expect Intel’s investment to close in early 2015.

The deal follows Intel's announcement in May of a partnership with another low-cost Chinese chip maker, Fuzhou Rockchip Electronics Co.




Edited by Maurice Nagle
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