Intel To Invest $1.5 Bln In Semiconductor Business Under Tsinghua Unigroup

(RTTNews) - Intel Corp. (INTC) announced that it has signed series of agreements with Tsinghua Unigroup Ltd., an operating subsidiary of Tsinghua Holdings Co., Ltd., a solely state-owned limited liability corporation funded by Tsinghua University in China. The companies expect Intel's investment to close in early 2015.

Intel also has agreed to invest up to RMB 9 billion or about $1.5 billion for a minority stake of about 20 percent of the holding company under Tsinghua Unigroup which will own Spreadtrum Communications and RDA Microelectronics.

The purpose of the agreements is to expand the product offerings and adoption for Intel-based mobile devices in China and worldwide by jointly developing Intel® Architecture and communications-based solutions for mobile phones.

Both Spreadtrum and RDA, controlled by Tsinghua Unigroup, are leading fabless semiconductor companies in China, which develop mobile chipset platforms for smart phones, feature phones and other consumer electronics products, supporting 2G, 3G and 4G wireless communications standards.

Under deal terms, Spreadtrum Communications, Inc. (SPRD) will jointly create and sell a family of Intel Architecture-based system-on-chips or SoCs. Initial products will be available beginning in the second half of next year and will be Intel Architecture-based SoCs sold by both companies.