Intel to acquire GPS division of ST-Ericsson

Intel has acquired ST-Ericsson’s GPS division. On Tuesday, ST-Ericsson reported that it had sold its GPS division to a leading semiconductor company, but the company did not yet name the chip company.

The amount Intel paid for the acquisition has not been disclosed. The joint venture between STMicroelectronics and Ericsson, ST-Ericsson, previously reported that the sale will save $90 million because it won’t have to restructure its GPS division. That division made an operating loss of $158 million in the first quarter of this year writes All Things Digital.

A spokesperson for Intel Asia said told ZDNet that the team of 130 employees of the GPS division will fall under Intel’s Mobile and Communications Group’s Wireless Platform R&D. The team is currently based in Singapore, India and the UK. Employees in Singapore and the UK will remain at their current locations, with the remainder to join an existing Intel office in Bangalore, India.

For Intel, the acquisition of the division is interesting, among other things, with regard to the integration of components on chips and with a view to the mobile market. The company is struggling in that market with competitors such as Qualcomm, Samsung and Nvidia that are successful in supplying arm chips. It looks like Intel’s new CEO Brian Krzanich is really looking forward to it Bet on the mobile chips. Last week, during a reorganization, a ‘new devices group’ was set up to focus on new product trends.