Aug 30, 2010

Intel snags wireless unit of chip maker Infineon

09:30 AM

The exterior of Intel's headquarters in Santa Clara, California.CAPTIONPaul Sakuma, APLet's hope that Intel doesn't try to slap those impossible to remove "Intel Inside" stickers on smartphones following the chip maker's $1.4 billion deal, announced this morning, to buy Infineon Technologies' Wireless Solutions business.

The Germany-based company makes chips for Apple's iPhone and other smartphones, giving Intel a way to take advantage of that growing market.

The deal "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," Intel CEO Paul Otellini said in a statement this morning. "As more devices compute and connect to the Internet, we are committed to positioning Intel to take advantage of the growth potential in every computing segment, from laptops to handhelds and beyond."

Up to now Intel has focused on personal computers, but that business is becomimg mature. Dell and Hewlett-Packard have warned analysts not to be too optimistic about sales for the rest of this year, and Intel recently reduced its revenue forecast.

Intel says it expects the deal with Infineon to close by April 2011.

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