Intel, Infineon negotiate over wireless business, reports say

By Jeffrey Burt
2010-07-30

Article Rating:

/ 0

Rate This Article:

Add This Article To:

Intel is negotiating to buy Infineon Technologies' wireless chip business for about $1.3 billion, according to published reports. At the same time, Samsung reportedly is making its own mobility play for Infineon's business.

Negotiations between Intel and Infineon Technologies over the sale of Infineon's wireless chip business reportedly are advancing, even as another possible suitor—Samsung Electronics—appears to be trying to muscle in.

Citing several sources close to the talks, Reuters reported July 29 that executives with Intel and Infineon are continuing to talk about a deal rumored to be in the range of $1.3 billion, and that an agreement between the two is "more and more likely."

Infineon's wireless processors include the WCDMA- and HSPA-ready X-Gold 3G baseband chips

That news comes a day after other reports surfaced that Samsung may now be entering the picture, also hoping to scoop up Infineon's mobile phone business. That idea surfaced in a July 28 research report from Citigroup analyst Glen Yeung. Yeung said Samsung was a better fit for Infineon's business, making the deal with Samsung more likely.

Rumors of talks between Intel and Infineon have been going around for several months, with officials with both companies declining to comment. However, Infineon CEO Peter Bauer has been quoted in recent days as saying he is pleased with how the company's wireless business is going and didn't see any reason to sell the unit.

Still, Infineon reportedly has hired JPMorgan Chase & Co. to facilitate a sale of the wireless business.

Intel executives have been open about their desire to expand the company's chip-making business beyond its traditional PC and server market, perhaps into the rapidly growing mobile phone space. In May, Intel unveiled new versions of its Atom chips that are designed for such devices as tablets and smartphones.

Atoms initially were introduced for netbooks, but Intel officials see an open field for expansion with the platform into such areas as mobile devices and the embedded space.

Infineon's wireless business, which makes chips for mobile devices built by the likes of Samsung, LG Electronics, Research In Motion, Apple and Nokia, would fit into such expansion plans.

Talk of negotiations between Intel and Infineon comes as wireless carriers prepare new fourth-generation mobile networks. Intel has invested in Clearwire, which is building out a WiMAX networking scheduled to be deployed in more than 50 cities throughout the country. At the same time, a competing 4G technology, LTE (Long-Term Evolution), is making inroads.

Jeffrey Burt is a contributor to our sister publication, eWEEK.

Related Stories:

	Discuss Intel, Infineon negotiate over wireless business, reports say

	>>> Be the FIRST to comment on this article!



	>>> More News Articles >>> More By Jeffrey Burt

Email Article To Friend ♦ Print Version Of Article ♦ PDF Version Of Article

FUEL Database on MontaVista Linux
Whether building a mobile handset, a car navigation system, a package tracking device, or a home entertainment console, developers need capable software systems, including an operating system, development tools, and supporting libraries, to gain maximum benefit from their hardware platform and to meet aggressive time-to-market goals.

Breaking New Ground: The Evolution of Linux Clustering
With a platform comprising a complete Linux distribution, enhanced for clustering, and tailored for HPC, Penguin Computing¿s Scyld Software provides the building blocks for organizations from enterprises to workgroups to deploy, manage, and maintain Linux clusters, regardless of their size.

Data Monitoring with NightStar LX
Unlike ordinary debuggers, NightStar LX doesn¿t leave you stranded in the dark. It¿s more than just a debugger, it¿s a whole suite of integrated diagnostic tools designed for time-critical Linux applications to reduce test time, increase productivity and lower costs. You can debug, monitor, analyze and tune with minimal intrusion, so you see real execution behavior. And that¿s positively illuminating.

Virtualizing Service Provider Networks with Vyatta
This paper highlights Vyatta's unique ability to virtualize networking functions using Vyatta's secure routing software in service provider environments.

High Availability Messaging Solution Using AXIGEN, Heartbeat and DRBD
This white paper discusses a high-availability messaging solution relying on the AXIGEN Mail Server, Heartbeat and DRBD. Solution architecture and implementation, as well as benefits of using AXIGEN for this setup are all presented in detail.

Understanding the Financial Benefits of Open Source
Will open source pay off? Open source is becoming standard within enterprises, often because of cost savings. Find out how much of a financial impact it can have on your organization. Get this methodology and calculator now, compliments of JBoss.

Embedded Hardware and OS Technology Empower PC-Based Platforms
The modern embedded computer is the jack of all trades appearing in many forms.

Data Management for Real-Time Distributed Systems
This paper provides an overview of the network-centric computing model, data distribution services, and distributed data management. It then describes how the SkyBoard integration and synchronization service, coupled with an implementation of the OMG¿s Data Distribution Service (DDS) standard, can be used to create an efficient data distribution, storage, and retrieval system.

7 Advantages of D2D Backup
For decades, tape has been the backup medium of choice. But, now, disk-to-disk (D2D) backup is gaining in favor. Learn why you should make the move in this whitepaper.