Intel buying Infineon’s wireless unit: $1.4 billion
Intel and Infineon have announced a deal that will have the giant U.S. chipmaker buying Germany-based Infineon’s wireless design and production unit at a reported price of $1.4 billion.
Intel has been looking outside the company for some of its expansion into new fields and apparently feels that it has found a ripe prospect in Infinion. Intel CEO Paul Otellini said of the purchase, “The global demand for wireless solutions continues to grow at an extraordinary rate. 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 has long been a supplier to handset builders such as Apple, Nokia, and Samsung, and currently ranks as the fourth largest supplier of cellular-broadband components in the world, according to a CNET story. Intel feels that this acquisition fits right into its plans, commenting “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.” By “application processor” Intel means CPUs, long the bread and butter of the Silicon Valley giant.
Intel is believed to be readying the introduction of a chip for smartphones which will use its state of the art 32 nanometer production process. This chip, code-named Medfield, is rumored to combine the handset’s processor with all the functionality needed for communications (3G, 4G, Wi-Fi, GPS, etc.) onto a single piece of silicon. Linley Gwennap, president and principal analyst of The Linley Group, says “Intel will be able to develop products that combine the application CPU and cellular baseband on a single chip, offer leading-edge 3G and 4G cellular technology, and add power-management and RF (radio frequency) components to its portfolio.”
Sounds like Intel is keeping up with the tech times.
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