World's number one processor chip maker Intel is seeing risk in not developing semiconductor technology for wireless communications. Intel is gradually building its design resources in RF and Wireless chip design. Intel had acquired Infineon's wireless solution business in 2011, after a long gap, Intel has acquired mobile connectivity Global Navigation Satellite System (GNSS) (GPS tech) business from ST-Ericsson.
The European semiconductor companies which were held leading position in wireless semiconductor sector are now loosing business due to Nokia's weak performance compared to its spectacular performance just upto few years back. The wireless chip market is now driven by U.S. companies such as Qualcomm, Broadcom, and few emerging China companies such as Spreadtrum. Intel with huge resources of all forms has every chance to lead in wireless market.
ST-Ericsson estimates the proceeds from the sale, combined with the avoidance of employee restructuring charges and other related restructuring costs, will reduce the joint venture’s cash needs by approximately $90 million.