Creative Signs $50 Million Licensing Deal with Intel
Creative Technology today announced it has entered into an agreement with Intel Corporation for Intel to license certain technology and patents from ZiiLABS a wholly-owned subsidiary of Creative, and acquire certain engineering resources and assets related to its UK subsidiary ZiiLABS Limited (formerly known as 3DLABS Limited). The US$50 million deal includes US$20 million to Creative for the licensing of certain technologies to Intel relating to ZiiLABS’ high performance GPU technology. The second part of the deal is US$30 million to Creative for the transfer of certain engineering resources and assets in the UK subsidiary to Intel. The UK subsidiary is a design entity engaged in, primarily on behalf of ZiiLABS Inc. Ltd, the development of various silicon solutions, including the ZMS chips for Creative. The transfer of engineering resources and assets will be through the divestment of the UK subsidiary by Creative.
As the next generation advanced media processors beyond 28 nanometers become increasingly complex and expensive to develop we must find new models to work with our partners and customers to drive continued product innovation. With this announcement we gain increased flexibility with the ability to partner with multiple semiconductor companies on advanced design and process technologies, allowing us to mitigate risk while maintaining control over the long-term direction of our product portfolio. Moving forward, it will be more cost effective for Creative to outsource to third party contract chip-layout houses on future advanced chips for its products, while at the same time allowing Creative to focus on its core strength – the designing and marketing of more innovative and exciting products for our customers. said Sim Wong Hoo, CEO of Creative Technology.
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