Several months after rumors surfaced that Intel was interested in buying Infineon's mobile chip business, the two sides could be close to a deal, according to reports.
Intel reportedly is on the verge of buying Infineon's wireless chip
business, several months after rumors
of such a deal
began surfacing and a week after the giant chip maker
surprised the industry with its proposed $7.68 billion acquisition of security
software vendor McAfee.
Citing unnamed people close to the negotiations, Bloomberg
and the Wall Street Journal both reported Aug. 26 that negotiations between
Intel and Infineon have advanced to the point where a deal could be announced
before the end of the month.
The sources put the price around $1.9 billion, according to the
Intel executives are pushing to expand the company's reach
beyond the core PC and server businesses. Infineon's wireless technology, which
can be found in such devices as Apple's iPhone and Samsung's Galaxy S
smartphone, would give Intel a way into the booming mobile phone market, where
Intel is virtually absent.
Intel officials have been looking to position its Atom
processors, initially developed for such devices as netbooks, as a possible
wireless platform, but Infineon's business would give Intel a quicker path into
Advanced Micro Devices traditionally has been Intel's key
competitor in the PC and server markets. However, some Intel executives point
to ARM, which designs processors that are
built by the likes of Texas Instruments and Qualcomm and are found in a large
percentage of mobile phones and embedded devices, a market Intel wants to get
Samsung, which also builds processors using ARM's
chip designs, also has been rumored to be interested in Infineon's mobile chip
business, but according to the Wall Street
, Infineon prefers Intel's offer because it would "bring more
money than a joint venture with Samsung," one of the newspaper's sources
A deal would come on the heels of Intel's announcement last
week that it wants to buy McAfee to help bring greater security features to its