8/31/2010 10:07:00 AM
Intel ramps up smartphone bid with Infineon purchase
IT manufacturer Intel is poised to buy German chipmaker Infineon Technologies AG's wireless unit for $1.4bn as it looks to claw its way into the smartphone market.
The deal is the second major acquisition in two weeks by Intel, giving the manufacturer technology in an area in which it has struggled.
Infineon's mobile unit, called WLS, makes chips found in Apple's iPhones as well as handsets made by Nokia and LG.
On August 19, Intel said it would pay $7.7bn to buy security software maker McAfee.
Intel said it would speed up Infineon's move into LTE. Infineon had planned to offer chips for LTE enabled devices by 2012.
Intel plans to keep Infineon's mobile unit independent once the cash transaction closes in early 2011.