Intel has agreed to acquire Infineon Technologies' Wireless Solutions business for approximately $1.4 billion, the companies announced late Sunday, as the world's largest chipmaker seeks to boost its presence in smartphones.
"The global demand for wireless solutions continues to grow at an extraordinary rate," Intel CEO Paul Otellini said in a statement. "The acquisition of Infineon's WLS (Wireless Solutions) business strengthens the second pillar of our computing strategy--Internet connectivity--and enables us to offer a portfolio of products that covers the full range of wireless options from Wi-Fi and 3G to WiMax and LTE (4G)."
Infineon ranked fourth in cellular-baseband shipments last year with a 10.7 percent unit share, according to a recent report from The Linley Group. Baseband chips enable wireless broadband, or 3G, on smartphones and tablets.
The Germany-based company is a major supplier to Apple, Nokia, Samsung, and others.
Intel said its goal is to expand mobile and embedded product offerings in the areas of smartphones, tablets, netbooks, notebooks and embedded computing devices. "Through this effort, Intel will pair WLS' best-in-class cellular technology with its core strengths to enable the delivery of low-power, Intel-based platforms that combine its applications processor with an expanded portfolio of wireless options," Intel said. An application processor is the main processor inside of a smartphone.
The chipmaker expects the wireless unit to remain a standalone business to support existing customers, including those with ARM-based products as well as Intel-based application processor platforms with 3G solutions. … Read more