Intel Sells Communications Arm

Intel has found a buyer for its struggling communications chip business, selling the unit for $600 million plus liabilities to Marvell Technology Group. Marvell said the acquisition would give it a stronger presence in the mobile chip industry, while allowing Intel to focus on its core businesses, such as laptop and desktop processors. The transaction is expected to close by the end of the year.

Rumors of a sale of Intel's communications business first surfaced in the Wall Street Journal earlier this month. While the company's XScale chips have done well in high-end phones, it has had little success in marketing its lower-end chips to device makers. The result has been huge losses for the communications arm, likely between $500 million and $1 billion a year.