Intel buys iPhone chip unit from Infineon

Intel has entered into an agreement to purchase the wireless unit of Infineon Technologies for approximately $1.4 billion in cash. The Wall Street Journal reports that the deal is expected to close in the first quarter of 2011, and will give Intel a significant boost in the wireless market. Infineon’s wireless unit produces chips used in smartphones, including Apple’s iPhone 4. “The acquisition of Infineon’s wireless 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,” said Intel CEO Paul Otellini. Infineon also makes electronics for the car industry, electronic devices for electricity generation and transmission, and chips used in credit and security cards.