In brief: Intel said to shed communications units

Intel, which continues to lose market share to rival Advanced Micro Devices, reportedly is planning to shed the majority of its communications business as it strives to sharpen its focus on its core microprocessor markets. According to a report in the San Jose Mercury News, Intel has been suffering losses despite a $10 billion effort to diversify beyond PCs. As a result, the company reportedly is looking to shed business that includes its IXP network processors and Xscale processors for cell phones and handheld computers. The plan apparently comes as part of a broad company overhaul that CEO Paul Otellini announced in April. Otellini said the company would look at all loss-generating areas as it reorganizes. Chuck Mulloy, an Intel spokesman, would not comment on the report, except to say "everything is under review in the entire company and so any comment would be premature." Intel is expected to shed more light on its plans in July following the 90-day review, Mulloy says.

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Intel, which continues to lose market share to rival Advanced Micro Devices, reportedly is planning to shed the majority of its communications business as it strives to sharpen its focus on its core microprocessor markets. According to a report in the San Jose Mercury News, Intel has been suffering losses despite a $10 billion effort to diversify beyond PCs. As a result, the company reportedly is looking to shed business that includes its IXP network processors and Xscale processors for cell phones and handheld computers. The plan apparently comes as part of a broad company overhaul that CEO Paul Otellini announced in April. Otellini said the company would look at all loss-generating areas as it reorganizes. Chuck Mulloy, an Intel spokesman, would not comment on the report, except to say "everything is under review in the entire company and so any comment would be premature." Intel is expected to shed more light on its plans in July following the 90-day review, Mulloy says.

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