Intel purchases Infineon’s wireless unit for $1.4 billion, gains access to new chipsets in deal

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Date: Monday, August 30th, 2010, 04:59
Category: News, wireless

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Processor giant Intel on Monday confirmed its plans to buy Infineon’s wireless division for US$1.4 billion in cash. The deal will see the company’s Wireless Solutions group work as a stand-alone company on Intel’s behalf and will give the company access to both 3G chipsets and a faster path to LTE-based 4G. It plans to use these not only for full-size notebooks but also Atom-based smartphones and tablets.

Per Electronista, Infineon claimed the selloff was a win as it allowed a new focus on car, industrial and security technology. The sale is widely known to be prompted by the company’s struggles with making its wireless section profitable.

The deal should be finished by early 2011.

In an attempt to head off concerns, Intel said the stand-alone nature of the wireless group would let it keep serving existing customers, including those who use ARM chips. Concerns had been raised that the buyout would be used to force Apple to seek alternate suppliers for 3G chipsets in the iPad and iPhone, although the iPhone 4 is exempt as it has switched away.

Intel’s plans are due to come together until 2011, when its Oak Trail platform for Atom chips should be efficient enough to be competitive.

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