Intel Corp. (INTC) announced plans to buy software firm Wind River Systems Inc. (WIND) for $884 million on Thursday in a move that will help it to step out of the traditional semiconductor market and expand into the consumer electronics space.

Intel is paying $11.50 in cash for each share of Wind River, valuing the company at a 44% premium to its Wednesday close. Wind River makes software systems for wireless devices and a host of other embedded computing gadgets, two key areas Intel has been eying for growth.

The acquisition of the Alameda, California-based company is the first major deal signed by Paul Otellini since he became chief executive of the world's largest semiconductor maker back in 2005. The deal is also being considered by industry experts as a strategic move on Otellini's part amid a large-scale consolidation spree in the technology sector.

As cash-strapped consumers

...

In a partnership with Zi Corporation, UTStarcom has begun shipping Internet Protocol television “set-top-boxes” in China, featuring eZiText, a predictive text-input solution. The Alameda, Calif. company (NASDAQ: UTSI) signed a licensing agreement with Zi Corporation in November of 2007, and both companies plan to work together on other products and services.

“We have chosen Zi Corporation again because of the quality of its text-entry solutions and superior technical support, especially in Asia,” said BaiJun Zhao, UTStarcom senior vice president. “We are very focused on developing our strategic base of IP solutions and Zi provides us with the text input capabilities we need in Asia.”

eZiText “learns” usage patterns and new vocabularies, and has predictive entry and word completion abilities. It is for use by electronic manufacturers and telecom carriers.

“We are very pleased that UTStarcom continues to use our award-winning products to succeed in the global marketplace,” said Milos Djokovic, Zi Corporation president

...