Intel, the world's largest semiconductor chip maker, has entered into a $50 million licensing agreement with Creative Technology Ltd. and ZiiLabs, its wholly-owned U.K. subsidiary. Under terms of the deal, Intel will pay $20 million for the licensing of certain technologies related to ZiiLabs' high performance GPU technology, while the other $30 million is for the transfer of certain engineering resources and assets in the U.K. subsidiary, Creative announced.
"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," explained Sim Wong Hoo, CEO of Creative Technology. "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."
ZiiLabs retains ownership of its StemCell media processor technologies and patents, while Creative gets to keep its patent portfolio in the field of 3D graphics and media processors. Creative owns more than 100 patents and is planning to engage in discussions "to further monetize this valuable collection," Hoo said.