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By Geir Moulson And Samantha Bomkamp, Associated Press Writers NEW YORK — Intel is buying the wireless communications unit of Germany's Infineon Technologies for $1.4 billion in cash, the second deal in as many weeks that allows the chipmaker to expand beyond the struggling personal computer market. Intel (INTC) has tried with limited success to get its chips into cellphones. It is hoping to change that by buying Infineon 's wireless business, which makes chips for smart phones such as Apple 's iPhone. It's a problem Intel is urgently trying to fix because the smart phone market is too lucrative for Intel to remain a bit player. Intel's chips are criticized as being too power-hungry for today's smart phones.
It seems that Intel is looking to acquire the wireless arm of chip maker Infineon, with a view to getting its processors wirelessly enabled and taking on ARM in the mobile phone space.
At Intel's Investor Day on Tuesday, Intel executives talked up using its chips in "smart TVs" and smart phones, new chips for tablets, new capabilities expected in the upcoming Sandy Bridge microarchitecture, both for data centers and PC clients; and new products for the embedded market.
Intel and Infineon Technologies are the subjects of conflicting acquisition rumors. In a report May 17, the German daily newspaper Financial Times Deustchland said that Intel is pursuing buying Infineon's wireless chip business.
Intel has a contract to acquire the wireless division of German chip maker, Infineon, according to brokerage Rodman & Renshaw’s Ashok Kumar, who said so in a note to his clients today. Intel has been long rumored to be in talks with Infineon, and this is the first hint that the deal is progressing. Intel has no option but to go after the smartphone business — widely recognized as the next major opportunity for the chip industry.
Intel has a deal to buy the wireless division of German chip maker Infineon , according to a published report . Rodman & Renshaw analyst Ashok Kumar said in a note to clients today that Intel is buying the division as part of its move into the smartphone business.
Intel are tipped to be in negotiations to acquire Infineon’s cellular chipset business, according to the Financial Times Germany.