Intel To Merge PC And Mobile Chip Operations

Intel has announced it is to merge its loss-making mobile chipmaking division with its PC business as the company faces up to strong competition in a changing market.

The company will combine the two existing divisions into one entity, Client Computing Group from January, which will be made up of workers from both the Core desktops and laptops processors team as well those working on its Atom chips for smartphones and tablets.

The reorganisation was announced by chief executive Brian Krzanich in an email sent to employees which was reported by the Wall Street Journal.

“The market continues to evolve rapidly, and we must change even faster to stay ahead,” Krzanich (pictured below) wrote.

All-change

The new group will be headed up by Kirk Skaugen, a senior vice president who currently heads up Intel’s PC Client Group, Intel spokesman Chuck Mulloy said.

“We are seeing a blending of the lines between various devices,” Mulloy added. “The idea is to accelerate our efforts for tablets and create greater efficiency.”

“Industry-wide, the lines have been blurring,” he added. “The question is whether we’re organised to map to where the market is going.”

The new division will also include sales of processors and modem chips used in mobile devices, which were previously part of the Mobile and Communications Group.

Intel has struggled to make much of an impression in the mobile chip business since first entering the market in 2011. The company has found it hard to grasp the sort of foothold it enjoys in the PC market, with competitors such as Qualcomm and Nvidia taking much of the mobile market.

This has led to major losses from the Mobile and Communications Group, which reported an operating loss of more than $1 billion in Intel’s last quarter. This contrasts with a major recovery in its PC business, which in its last quarterly results posted revenues of $9.2bn (£5.8bn), up six percent sequentially and up nine percent year-over-year.

However, there had been recent signs that the company was looking to ramp up its investment in the mobile markets. Last month, it revealed it would be paying $1.5bn (£920m) to acquire a 20 percent stake in Spreadtrum Communications and RDA Microelectronics as it looks to push into the Chinese market.

What do you know about Intel? Take our quiz!