Intel Buys Infineon's Wireless Solutions (WLS) Business for $1.4 Billion

By Erin Monda, TMCnet Contributor

Intel (News - Alert) is plunking down $1.4 billion to buy Infineon’s Wireless Solutions Business (WLS).

The deal will close sometime in early 2011, and is anticipated to expand Intel’s reach significantly.

WLS’ acquisition will add to Intel’s current Wi-Fi and 4G WiMAX (News - Alert) capabilities. Overall, it seems that Intel plans to incorporate all of Infineon’s current 3G strengths into its own infrastructure.

After all, most of the technology garnished from Infineon during the deal will be used in the future production of Intel(R) Core processor-based laptops and various Intel(R) Atom(TM) processor-based mobile devices.

This development is far more impactful than it might seem on the surface.

According to Tom Keating (News - Alert), TMC’s resident IT expert, “Infineon chips are used in many laptops and smartphones, including the iPad and iPhone 4. This deal would assist Intel in cracking into the fast growing smartphone chipset space.”

According to officials at Intel, WLS will continue to operate as a standalone business. And, “Intel is committed to serving WLS' existing customers, including support for ARM (News - Alert)-based platforms.”

It seems as if the deal will be mutually beneficial for both companies – Intel will gain an even stronger foothold in the realm of connectivity.

On the other hand, WLS will be better positioned to continue expansion into other, specific markets – such as those involving automotive, industry and security technologies.

And what’s a meager $1.4 billion price tag (News - Alert) in the face of success?

(source: http://it.tmcnet.com/topics/it/articles/98369-intel-buys-infineons-wireless-solutions-wls-business-14.htm)