Intel acquires Infineon wireless technology business

$1.6 billion move gives leg up into smartphone business
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Intel has announced that the company is to acquire the wireless silicon business from Infineon for $1.4 billion.

The move boosts Intel's technology portfolio for the smartphone market which has generally opted for non-Intel CPU and GPU offerings and in the process gains most major mobile phone manufacturers as a client thanks to the broad adoption of Infineon hardware components.

One such Infineon customer is Apple, with the iPhone utilising technology components from the Intel-acquired vendor. Fox Business TV asked Intel CEO Paul Otellini what he thought Steve Jobs thought of the move. “Steve was very happy. The industry was abuzz that this business unit was on the market, and there were a number of competing companies for it," said Otellini.

"The key thing is the technology they have today, the customer connections they have today, and where the technology in general is going. We look forward to a period in the not so distant future where all of these functions can be on a single chip."

"Intel has great capabilities and applications processors today, but bringing in the capabilities for 3G and ultimately LTE (Long-term Evolution) onto the chip, that makes a lot of sense to us from an economic and power standpoint."

A video of the Fox Business News interview with Otellini can be found here.

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