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Tuesday, June 06, 2006
Intel Eyeing Sale of Part of Comms Chips Unit

Intel is looking to sell parts of its communications chip business according to a report on the Wall Street Journal Web site on Monday.

The sale plan includes chips used to run software on cell phones and chips for network devices, according to the report, which cited unidentified people familiar with the matter.

The story, which follows a similar report in the San Jose Mercury News on Saturday, also said that Intel recently approached potential buyers such as electronics companies and financial-service companies that could lead a buyout.

The chip maker said in late April that it would conduct a top to bottom review of the company with an aim to cutting costs in face of intense competition from rival AMD.

Spokesman Chuck Mulloy declined comment on the report but said Intel would announce results of its review in July.

"We're looking at the business from top to bottom ... We have not made any decisions," said Mulloy.

Since the review was announced in April, analysts and industry media reports have speculated that Intel could get out of certain businesses such as memory products.

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