ARC Wins Intel Deal for Wireless Connectivity

Configurable chip designer ARC International has signed a multi-year agreement with Intel that is likely to see its processors used for WiFi and WiMAX connectivity to support low-power X86 processors designed for the next generation of internet devices.

No value was given for the deal, but equity analysts at Panmure Gordon estimated it could be a $5m to $10m deal, while Landsbanki predicted it could generate 3m pounds ($6m) in royalty revenue by 2010.

ARC quoted Jim McGregor, In-Stat’s principal analyst and research director for enabling technologies, as saying that by combining ARC processor-based wireless broadband solutions with low-power X86 processors, Intel was underscoring its commitment to achieving flexible and power-efficient solutions through heterogeneous multi-core platforms.

McGregor said that In-Stat predicted the rapid adoption of Wi-Fi and WiMAX technology could lead to close to 480 million mobile devices shipping in personal and professional applications by 2010, including mobile PCs, mobile internet devices, ultra mobile PCs, portable media players, digital handsets, and other consumer electronic devices.