Intel buys Zarlink’s UK tuner division

Zarlink Semiconductor is selling its UK RF front end business to Intel in a deal worth a total of $70m, with the deal expected to close by the end of November.

The Swindon-based business develops demodulators and tuners for the digital TV market. In the 2005 financial year it created revenue of $53m, claimed Zarlink, the major part of its $75m revenue from consumer comms devices.

“This transaction places all parties in the best position to succeed,” said Kirk Mandy, president and CEO at Zarlink. “Our RF front-end consumer business will prosper as part of a company that has the scale and critical mass necessary to succeed in the consumer electronics marketplace.”

A DVB-S2 satellite tuner

Mandy said Zarlink would now focus on network communications, optical, and low power sectors.

For its part, Intel aims to develop more devices for digital TVs, set-top boxes and digital video recorders.

“Demodulation and tuner technologies are two key ingredients in this infrastructure and play an increasingly critical role in a broad range of CE devices,” said Glenda Dorchak, v-p for the digital home group and general manager for consumer electronics at Intel.

“The deep expertise in RF/mixed-signal technology that the Zarlink team brings is key to advancing our consumer electronics business.”

Earlier this year, Intel bought Oplus Technologies which places video processing alongside the tuner and demodulator devices from Zarlink and Intel’s own processing expertise.