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Intel's Latest Acquisition: Doubling Down On Its Mobile Bet

By Ashraf Eassa:

While everybody has been fixated on the unfortunate early retirement of Intel (INTC) CEO Paul Otellini and the dreadful earnings report from PC-giant Hewlett-Packard (HPQ), the chip giant very quietly made an interesting acquisition. The firm picked up ZiiLabs - formerly 3D Labs - from Creative Technology in a $50M deal that was a mix of patent licensing as well as engineering team and asset sales.

So, why is this interesting/important?

The 3D Graphics Industry: Only Two Survived

Back when 3D graphics cards for the PC were a brand new technology, there were countless competitors, similar to the X86 CPU space back in the late 80s/early 90s and very similar to the ARM (ARMH) system-on-chip industry today. Of course, industries do not remain profitable with many players, so consolidation happens. Nvidia (NVDA) and ATI Technologies (now owned by AMD (AMD)) ended up the last men standing in the PC graphics

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