US chip giant Intel has made another move into the mobile space by quietly snapping up bankrupt Israeli based Comsys Mobile Communication and Signal Processing. According to a report by RCR Unplugged, the reported US$30 million deal happened in May; it has not been confirmed by either firm but has been widely reported in the Israeli media. Comsys started out as a modem making firm for PCs developed for Conexant Systems, but later developed IPR for mobile modems. According to Forward Concepts analyst Will Strauss, the firm’s biggest licensee was Texas Instruments, which later purchased the Comsys mobile operation. Comsys then changed direction and entered the WiMAX business – a key focus for Intel – with a combo WiMAX/GSM modem chip.

Strauss says Comsys’ 80 employees will now join Intel’s major mobile R&D centres in Haifa and Petah Tikva. Another source close to both firms confirmed to RCR Unplugged, “Comsys did, or was about to, go out of business, so Intel just hired some of their employees.” The deal forms part of an effort by Intel to strengthen its standing in the mobile space. It has also been linked recently with a move to acquire German chip-maker Infineon. Intel’s in-house efforts have concentrated on its new Atom chips designed specifically for smartphones. However, according to reports last week the first phones running Atom look set to be delayed until early next year.