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The deal was apparently made in late July, and the two companies finalized the last details on September 30 this year. DigiTimes reports that Intel has made public its desire to buy Via Technologies entirely earlier this year, agreeing initially on a $500 million acquisition. The company seems to have changed its mind in the meantime and decided to acquire only some of its assets. The terms of the deal still remain undisclosed.
Via Telecom is a company that deals in the production of low-end ARM Cortex SoCs (system-on-chips) like the ARM Cortex-A7 that carries CDMA, EVDA, GSM/GPRS/EDGE communication capabilities together with baseband processors and even modems.
All of the Via Telecom's products are made to work with entry-level smartphones and tablets. Intel might have taken an interest in Via Telecom's development to better integrate the newly acquired licenses into its own Atom development and the future portfolio based on the low-powered Intel SoC.
Why Intel decided to buy low-cost telecommunication tech is a mystery
From what we see right now, it seems that Intel hasn't yet abandoned its mobile market endeavors completely and still hopes that it will somehow have a proper comeback beyond the limited 2-in-1 market.
The patent portfolio now in Intel's hands might help the American company really start a serious breakthrough in the handset industry, beginning from the ground up, allowing them to cover possible low-end smartphone models.
Intel's interest in investing in low-end smartphone models didn't start with an investment in Via Telecom. Last year Intel decided to acquire 20 percent stake in Tsinghua Unigroup for $1.5 billion, which is one of those rare occurrences of American companies buying shares in state-owned Chinese corporations.
This way Intel managed to get its hands on Spreadtrum Communications and RDA Microelectronics indirectly through ex-Tsinghua shares. With these companies in Intel's portfolio, new development opportunities appear for future Atom low-cost processing solutions.
