Update: Intel drops WiMax chip due to “major drop in demand”

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Santa Clara (CA) – Intel informed its customers that it is halting production of its “Rosedale 2” WiMax chip due to the global economic slowdown.

Intel dropped a bombshell earlier today, telling its customers that it will stop manufacturing the WiMax Connection 2250 broadband interface chip and the WiMax Connection 2300R radio chip. The news came via a product change notification sent out by the company, announcing an unusually quick phase-out pace. Orders have been non-cancelable and non-returnable since April 1, and final orders are taken today (June 5).

Final shipments are expected to take place on September 30, 2010.

Intel is one of the major companies globally driving the commercialization of WiMax. It has been one of the big manufacturers of WiMax hardware and it is among the top-3 investors in the Clearwire, the WiMax carrier in the U.S. The company has always been seen to have a significant role in pushing WiMax to the consumer through its knowledge in hardware. In a phone call with TG Daily, Intel said that the company will not drop its WiMax chip production, but focus on more recent WiMax chips (Echo Peak) instead.

Most recently, Intel told us that it is still optimistic about the opportunities of WiMax in the long run. Just a few weeks ago, we were told that the company is betting on a capacity vs. coverage race against 3G technologies such as HSPA and EVDO.  

Article updated at 11:55 am with statement provided by Intel.