Intel, RIM Close to Deal

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Research In Motion Ltd.’s stock shot up 6% yesterday on speculation the BlackBerry maker will announce a licensing deal with Intel Corp. today that will allow the computer chip giant to use technology found in RIM’s popular e-mail device. Intel has apparently agreed to use RIM’s battery-saving technology in a new generation of chips based on a nascent wireless tech standard called WiMax and RIM may also start using Intel chips in the BlackBerry, published reports indicated.


“No matter what happens, this would be a huge partnership for RIM,” said Kona Shio, an analyst with Conscius Capital Partners in Montreal. “When you are talking about Intel you are talking about huge scale. Both sides would be winners.”

Waterloo, Ont.-based RIM is expected to license technology to Intel so its chips can better send and receive data between wireless devices in an effort to keep pace with the mushrooming demand for wireless data. The Gartner Group, a Stamford, Conn.-based tech consultancy, predicts all wireless devices will have e-mail capabilities by 2010.

Intel, is trying to reach new customers as part of its “platformization” strategy. The Santa Clara, Calif.-based company, whose chips power nine out of 10 personal computers, wants to sell more chips that perform a range of functions, such as audio and video, in new devices. In June, Intel signed a deal with Apple Computer Corp. to supply the hardware maker with chips for its trendy machines.

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