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Intel Xscale getting the axe

Xscale is getting the axe including other divisions such as its network processors business IXP. Intel spent more than $10 billion to enter the communications business over the years, but the microprocessor giant lost its shirt — if not millions of dollars in the arena. The reported communications-chip sale is said to be part of Intel’s plan to overhaul the company. Intel is also set to include the layoff or redeployment of 16,000 employees. According to the report, Intel has put the following product lines up for sale: Intel’s IXP network processor and communications processor lines are on the block, the report said. Those lines made about $150 million in revenue for 2005, according to the report. Intel’s Xscale processor business, including the StrongARM chip for PDAs, BlackBerrys, cell phones, handheld computers and portable media players, is up for sale, it said. That business made approximately $250 million in sales last year, according to the report.

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Rich Gates

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