Intel will acquire Infineon Technologies’ wireless division for US$1.4 billion, the company said Monday.
The acquisition of Infineon’s wireless division could help Intel grow faster in the high-volume smartphone market, where the company has minimal presence. Most smartphones today carry chips designed by rival Arm, and Intel has had its eye on the smartphone market as the volume of chips for mobile devices outpaces traditional CPUs that go into PCs.
Intel earlier this year released low-power Atom chips for high-end smartphones and tablets, and next year is expected to release new Atom chips for wireless handsets that are more power efficient. Most Atom chips today go into netbooks, and Intel until now has struggled to snag customers to use Atom chips in smartphones.
The acquisition will also net Intel some of the world’s top smartphone makers as customers. Infineon’s Wireless Solutions division makes 3G chips and baseband processors that are used in smartphones like Apple’s iPhone and Samsung’s Galaxy S, and tablets like the iPad.
Infineon was originally formed when Siemens spun off its semiconductor division in 1999.
Infineon earlier said it was in discussions with interested parties about a “transaction” concerning the company’s Wireless Solutions division. The division represents approximately 30 per cent to Infineon’s total annual revenue of