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"Chipset makers are used to operating on low margins and know how to survive the low-end of the business," says Febius.
Magnolia will continue to develop its software and will also continue to make it available to mobile device vendors and chipset makers.
The speed race, he adds, is good for everyone: Faster processors should increase business for chipset makers, help handset makers distinguish their products, help retailers sell more handsets and allow consumers to do more on their phones.
Wisair, one of the chipset makers trying to get its Ultra Wideband (UWB) and Wireless USB solutions into every consumer product ever, is demonstrating the use of Wireless USB in camera phones at 3GSM.
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Chipset maker Qualcomm says that a chip and software package for LTE Broadcast will be commercially available in early 2014.
Mr. Meyer said the company had been considering acquiring a chipset maker for a number of years, but it only recently found ATI to be receptive.
In 2010, both Intel and mobile chipset maker Qualcomm participated in an $11 million funding round for Sotera Wireless, a San Diego company developing a wrist-watch-sized version of the wall-mounted medical monitors common in hospital rooms.
But its first formal statement, a 74-page white paper cosigned by base station maker Ericsson and chipset maker Qualcomm, is telling: it sets a goal of delivering data 100 times more efficiently to mobile phones, the devices most Internet newcomers will use to link to the Net.
The buyer is Taiwanese chipset maker VIA Technologies.
See related story: Is Intel gunning for chipset maker VIA?
This is the most recent twist in Intels clash with the Taiwanese chipset maker.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com