Intel sells XScale division to Marvell

Intel just announced that it is selling its handheld processor division to Marvell Technology Group for $600 million. That division produces versions of Intel’s XScale processor, derived from the old DEC StrongArm.

In the deal, Intel is selling its PXA9xx communications processor and PXA27x application chip, which are used in only a few handheld devices.

Intel will also keep its networking and storage processors, which bear the XScale name, Manetta said. This means Intel will maintain its architectural license with ARM, a designer of processor cores for mobile phones and embedded devices.

The division contains about 1400 people. Marvell employs 2200. Intel shares are up slightly on the news, while Marvell stock dropped.