Intel buys Infineon mobile division for $1.4 billion

Chip giant Intel has bought the mobile division of the German Infineon Technologies. Intel wants to broadly deploy the newly acquired chips and technology in laptops, netbooks and mobile devices. The deal should be completed in early 2011.

With the deal, about which strong rumors surfaced at the beginning of this month, is an amount of 1.4 billion dollars. Intel thus becomes owner of Infineon’s Wireless Solutions Business. This division, also known as WLS, will continue as an independent company under Intel. The current customer base will be maintained, with support continuing as usual.

Infineon’s WLS is a division that focuses on mobile telephony equipment. Among other things, the baseband chip in the new iPhone 4 comes from the stable of the German company. As a result of the takeover, Intel now also has 3G technology in addition to Wimax technology. In addition, Intel now also wants to focus together with WLS on the development of products for the new network technology lte. Intel hopes to gain a stronger position in the smartphone market with its expanded portfolio. The company also says it intends to apply the new techniques in laptops, netbooks and tablets.