Wednesday, 27 November 2019

Intel wants to sell off its home connectivity unit

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According to sources familiar with the matter, Intel is reportedly looking for buyers for its connected home division which produces chips used in home internet access gear.

The chipmaker has even gone as far as to hire a financial adviser to help with the deal as the firm looks to sell off the unit responsible for bringing in annual sales of around $450m.

Intel's connected home business manufacturers the semiconductors required to provide wireless connections in home routers and gateways. The division offers a range of chips that allow consumers to manage data traffic and connect to WiFi but it has struggled to compete against its larger rivals, Broadcom and Qualcomm.

Trimming the fat

Intel's CEO Bob Swan has been taking a closer look at the company's operations and has said that he will explore options for areas that are not competitive. 

For instance, the chipmaker sold off its smartphone modem business to Apple for $1bn back in July and Swan has indicated that its memory business is another area where he may look for a partnership.

As smart devices became more ubiquitous, Intel created its connected home initiative to ensure that its computing chips found their way into this new range of devices. Throughout its history, the company has often created new units as a way to help further its CPU business.

We'll likely hear more about Intel's connected home business once it has some potential buyers lined up for the unit.

Via Bloomberg



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