Intel Corp announced a corporate shake-up yesterday, including the setting up of a dedicated cellular and wireless business unit to house recently-acquired communications chipmaker, DSP Communications Inc, and focus on the booming market for wireless product chipsets.
The world’s number-one chipmaker christened the new unit, which replaces its so-called Computing Enhancements Group, the Wireless Communications and Computing Group. DSP, a supplier of chipsets, reference designs, software and other baseband technology for CDMA, TDMA and PDC digital cellular protocols which Intel acquired last month for $1.6bn, will function as a wholly-owned subsidiary within the new group’s Cellular Communications Division.
The new group will also be home to Intel’s’ joint venture with Analog Devices Inc, a manufacturer of integrated circuits for analog and digital signal processing applications, announced last February. The partnership is working on developing a fixed-point, low-power digital signal processor (DSP) architecture for video, image, voice and data applications on wireless devices.
The new group, which includes Intel’s flash memory and digital signal processing businesses, is aimed at taking on a market worth up to $20bn a year, Intel spokesperson Tom Waldrop told ComputerWire. Ronald Smith, who headed the Computing Enhancements Group, will lead the unit.
Intel also announced the expansion of its Network Communications Group, which develops open-standard processors for networking equipment such as hubs and routers. The group will absorb production of embedded controllers and microprocessors for the communications industry from the Applied Computing Products Division of the Computing Enhancements Group.
The final piece of yesterday’s mini-makeover was the devolution of overall responsibility for Intel’s IT infrastructure, internet-based customer order and supply chain management system and human resources department from president and chief executive officer, Craig Barrett, to chief financial officer, Andy Bryant. Waldrop said the new responsibilities were complimentary to Bryant’s financial duties.
These newly-created organizations and consolidations are intended to allow Intel to move as rapidly as possible after new market opportunities offered by the internet and e-business, and take an increased role in the fast-growing markets of networking and wireless communications, Barrett said in an official statement.
