Intel Buys Infineon’s Wireless Division

Intel is expanding its reach into the wireless communication world with the planned purchase of Infinion’s Wireless Solutions division. The deal will cost Intel about US$1.4 billion in cash, and should be completed in the first quarter of 2011.

Infineon builds 3G wireless chips, and Apple has been among the company’s clients in the past. According to Intel, the Infineon Wireless Solutions division will operate as a stand-alone business and will continue to support its client base.

“Intel is committed to serving WLS’ existing customers, including support for ARM-based platforms,” the company said in a statement. “The acquired technology will be used in Intel Core processor-based laptops, and myriad of Intel Atom processor-based devices, including smartphones, netbooks, tablets and embedded computers.”

By bringing Infineon under its control Intel is strengthening its position in the 3G wireless market, and positioning itself to be a player in the LTE wireless data market as it rolls out.

Intel also recently purchased antivirus and security software maker McAfee with plans to add on-chip security to its product offerings. Combined with its Infineon Wireless Solutions purchase, Intel looks to be on its way to building more tightly integrated hardware solutions for mobile devices.