Intel Acquires Infineon for $1.4 Billion, Getting Back Into the Mobile Chip Game

Intel has agreed to acquire Infineon Technologies’ Wireless Solutions business, for approximately $1.4 billion. The announcement came over the weekend, with Intel looking to further its mobile presence. This acquisition comes on the tail of Intel’s announcement to buy McAfee, a securities software company, for nearly $8 billion.

Based in Germany, Infineon is a major supplier of chips to Apple, Nokia and Samsung, among others. Its wireless segment will remain a standalone business, maintaining relations with existing customers. This will include its ARM-based products and Intel-based application processor platforms.

“The global demand for wireless solutions continues to grow at an extraordinary rate,” said Paul Otellini, Intel president and CEO. “The acquisition of Infineon’s WLS business 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 WiFi and 3G to WiMAX and LTE. As more devices compute and connect to the Internet, we are committed to making certain that Intel is well positioned to take advantage of the growth potential in every computing segment, from laptops to handhelds.”

This is the latest in a string of moves Intel has made towards expanding its mobile initiatives, particularly as smart phones and tablets become central to the consumer electronics industry. The acquisition is strategic for Intel, as Infineon silicon chips are used in the iPad and iPhone 4, among other mobile devices.

Other recent news from Intel is a partnership with Nokia, and a settlement with the FTC, where the company revealed more on its mobile pus. Read here for more analysis on why Intel’s acquisition of McAfee is good for its mobile security future.