May 29 2013, 5:21am CDT | by Sumayah Aamir
Intel announced on Tuesday that the company has acquired the GPS chip business division of ST-Ericsson. GNSS, the global navigation satellite system run by ST-Ericsson, is a joint venture of the two companies. One is the Swedish telecom manufacturing company Ericsson and other is the chip manufacturing European company STMicroelectronics.
It looks like that new CEO of Intel, Brian Krzanich, is ready to make changes. He has just joined the company 12 days before and signed an acquisition deal to buy mobile connectivity GNSS unit. This deal includes personal receivers to connect with GPS technology and GLONASS. Later one is another satellite navigation systemwhich is based on radio waves and Russian Aerospace Defence Forces operate this.
According to the AllThingsD report, all the terms and conditions of this agreement are not yet opened. Both Ericsson and STMicro faced a big $158 million operating sales loss out of total sale of $256 million in the first quarter of 2013. That is why, both the companies are closing JV. ST-Ericsson announced that GPS chip navigation systems and wireless phones supply business unit is being sold. The reason behind this sale is to get cash of about $90 million for company's annual budget. As STMicro has to spend up to $450 million in last month for the company transition and wind-down.
Intel do the acquisition to fulfill the needs of mobile offerings and will be interested more to use German Infineon mobile chip business. Now Intel is ready to compete Qualcomm in its wireless chip business.
Image Credit: Getty Images
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