Marvell has agreed to buy Intel's mobile chip business. The $600 million deal was announced this week. There were rumors of a sell-off in the works for Intel's mobile chip business earlier this month.
Despite being the leader in desktop chips, Intel has only seen limited success with its mobile business. It makes the XScale chip which powers some higher-end handsets like the BlackBerry 8700. But the vast majority of phones don't use as powerful of chips and Intel has been stuck with only a fraction of the market.
Marvell is not currently in the mobile phone business and will concentrate its efforts on 3G handsets.