Marvell Purchase Unleashes Intel Cellphone Processor Possibilities

Responding to last weeks startling announcement of Intel's cellphone processor division sale to Marvell, the Handset Component Technologies Service of Strategy Analytics said that Intel was never able to grow its presence beyond applications processors for PDAs. This will be a huge opportunity for Marvell, granting Marvell access to Intel's intellectual property (IP) in 3G and 3.5G technology.

By contrast, the disappearance of Intel from the mobile phone and applications processor business will have only a minor effect on handset OEMs such as Nokia, Motorola, Samsung, LG, Sony-Ericsson and BenQ-Siemens.

The report concludes that the sale of Intel's mobile phone and applications processor business to Marvell on Tuesday for $600 million is no big deal for the cell phone industry. For several years Intel has been a small player in a small segment of the overall mobile phone processor business, and has had little penetration into basebands, and no penetration into the transceiver segment of the market. Both segments represent multi-billion dollar opportunities.

According to Stephen Entwistle, Vice President of the Strategic Technologies Practice within Strategy Analytics, "The main problem for Intel's mobile phone processor division was that it suffered from a lack of access to the Intel Group's latest semiconductor processes. The purchase by Marvell will change this, which should give the product range a new lease on life."

Stuart Robinson, Director of the Handset Component Technologies service at Strategy Analytics adds, "Marvell has a good track record in the fabless chip business. It can supply high volume consumer chips profitably, despite aggressive price pressure. Marvell now commands two ARM-based designs, its existing Feroceon and Intel's XScale, giving it greater potential to penetrate the 3G handset market."

Posted to the site on 3rd July 2006