Intel (NSDQ: INTC) is keeping an eye out for potential companies to buy that could help it expand its chip business to smartphones and consumer-electronics.
Intel’s CFO Stacy Smith told Bloomberg in an interview today: “We are looking at what we believe can accelerate our progress in those markets…As we see other opportunities like that, we think it’s a place where we can and will deploy capital.” Smith did not elaborate on what kind of companies they would consider, but it could be something on the integration side of the business that would aid in integrating the chips, rather than anything consumer-facing, like a device or OS-maker.
For instance, last year Intel acquired Wind River for $884 million, which gives Intel the software it needs to run devices ranging from cars to mobile phones.
To be sure, Intel has options given that it ended the first quarter with $16.3 billion in cash after reporting record sales for the period. The purpose of the acquisition would be about the technology, rather than for the company’s earnings. Today, Intel’s processors run in about 80 percent of the world’s personal computers, but as trends move to cheaper and more portable devices that are always connected, Intel will want to expand its offerings.
It recently agreed to merge its mobile operating system with Nokia’s Maemo operating system. Together, the two are building a high-end operating system called MeeGo that will be able to run on a variety of devices from in-car navigation to portable devices and mobile phones.