The US semiconductor firm has struggled to gain a foothold in the smartphone and tablet market, lagging behind industry leader and rival Qualcomm, but the deal would give it a bigger slice of the Chinese mobile chip market, where growth is still strong compared to maturing Western markets.
Intel has struck the deal with Tsinghua Unigroup, a government-affiliated private equity firm that owns mobile chipmakers Spreadtrum Communications and RDA Microelectronics, and the deal will also provide the two Chinese firms support from a US semiconductor giant on chip design and development.
"It has become a national priority of China to grow its semiconductor industry," said Tsinghua Unigroup chairman Zhao Weiguo in a statement released by Intel today.
"The strategic collaboration between Tsinghua Unigroup and Intel ranges from design and development to marketing and equity investments, which demonstrate Intel's confidence in the...