Samsung Electro to supply mobile modules to Intel

South Korean electronic parts maker Samsung Electro-Mechanics Co. said Wednesday it has signed a deal with Intel Corp. to provide wireless modules for use in mobile devices from the U.S. company.

The deal calls for Samsung to provide various modules, including WiMAX and WiBro modules, to be used in production of Intel’s ultra-mobile PCs and other mobile Internet devices starting in the third quarter, the Korean company said. Financial terms weren’t disclosed.

Ultra-Mobile PC, abbreviated UMPC, is a palm-sized tablet PC initially developed jointly with Microsoft Corp. and Samsung Electronics Co., among others.

Samsung Electro, an affiliate of Samsung Electronics, completed development of the WiMAX and WiBro modules last year, which allow access to high-speed Internet even when users are in motion. WiMax is a wireless Internet technology developed by Intel Corp., and WiBro is an upgraded version of WiMax developed by South Korean telecom companies.

In August 2006, Samsung Electronics signed a deal with Sprint Nextel, Motorola Inc. and Intel to cooperate in developing and commercializing WiBro in the U.S., one of the world’s largest communications markets.

Samsung Electronics expects that the number of its WiBro network users in the U.S. will exceed 100 million this year and it will grow to 140 million and 170 million in 2009 and 2010, respectively.

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