Intel hints at comms divisions sell-off

Rumours suggest that Intel is negotiating a buy-out of its loss-making units

Intel is intending to sell off several of its loss-making communications divisions as part of the chip giant's ongoing restructure.

The businesses believed to be earmarked for sale are the loss-making Xscale and IXP chips for mobile phones, along with a number of portable technologies and network devices.

There are also suggestions that Intel has already approached various companies that could lead a buy-out of its loss-making units.

Paul Otellini, chief executive at Intel, announced a 90-day strategic review of the company's operations in April that would identify loss-making areas of the company.

Otellini cited tough competition from rival AMD as the reason for the cost-cutting initiative.

According to sources close to the negotiations Intel is expected to make an announcement of its review in July.

Intel is not considering selling its Centrino mobile platform for notebook PCs, and is believed to be holding on to its WiMax wireless standard.