Intel Is in talks with Max Linear, a U.S. analog chip maker, to sell its home-connected chip division to the latter, according tomedia reports. Home Connect chip division is the chip that Intel uses to make DOCSIS modems and gateways, as well as chips for WiFi and smart home products.
Intel’s DOCSIS chipset has been paired with MaxLinear’s front-end chips, and in January 2019, Intel and MaxLinear announced that they are working together to design a platform that supports full duplex DOCSIS (Full Duplex DOCSIS, FDX) to achieve 10Gbit/s symmetric speed spacing on a hybrid fiber/coaxial cable network.
Given the partnership, Intel’s sale of all or part of the Home Connect division to Max Linear is credible. MaxLinear’s revenue for 2019 was $317 million, compared with $450 million for Intel’s home connectivity division last year. This means that if the deal is successful, MaxLinear’s revenue will double.
In addition to Linear Max, Intel is also selling home connectivity to Qualcomm and MediaTek, and it appears that Intel is already determined to sell the business.
In Intel’s new CEO Bob Swan’s plan, uncompetitive businesses will be streamlined! It’s no surprise that they sold their baseband business to Apple last year for $1 billion, a result in the low-margin home-connecting division.
Intel also has a storage division at a loss, and Bob Swan is planning to sell the unit or seek outside co-operation.