Chipzilla Intel gulps down 'Internet of Things' chip unit Lantiq

Chipzilla makes a dash for the IoT cash

Chip giant Intel has snapped up German network chipmaker Lantiq for an undisclosed sum as part of its plan "to make everything smart and connected".

Lantiq, which holds more than 2,000 broadband comms patents, is expected to boost Intel's move into the "connected home" and "intelligent network" market.

It is the latest move by the big tech firm into the so-called "internet of things" market; Intel set up an entire biz unit devoted to the IoT in November 2013. Last year Google bought smart thermostat and smoke alarm-maker Nest Labs for $3.2bn (£2.1bn). Meanwhile Samsung Electronics has said all its products will be internet-ready within five years.

"By 2018, we expect more than 800 million broadband connected households worldwide," said Kirk Skaugen, general manager of Intel's Client Computing Group.

Dan Artusi, Lantiq chief executive, said the deal would turn broadband customer premises equipment into "a smart gateway that connects an increasingly diverse roster of devices and services in the home".

The company said the deal will expand its cable residential gateway market and broaden its DSL, Fiber, LTE, retail and IoT smart router presence. ®