SANTA CLARA, Calif. (AP) — Intel will pay up to $1.5 billion for a 20 percent stake in a Chinese venture that will design and make Intel-branded chips for mobile phones and other electronics.
The Chinese chipmakers Spreadtrum Communications and RDA Microelectronics are controlled by Tsinghua Unigroup Ltd., a state-owned company funded by Tsinghua University in Beijing.
Intel is also attempting to become a tougher competitor in the mobile chip business, which it has been unable to dominate the way it has desktop and laptop computers. The company is also pushing for a larger share of China’s growing mobile market, which is already the largest in the world.
The push has taken on added urgency as the popularity of smartphones and tablets have led to sales declines for traditional personal computers, Intel’s main business for years.