Intel acquires Infineon WLS

In a line of acquisitions, Intel has taken over Infineon's Wireless Solutions Business (WLS) in a cash transaction valued at approximately $1.4 billion. The deal is expected to close in the first quarter of 2011. Intel, which acquired McAfee last month, has now strengthened two of its widely referred  "three pillars" - energy efficiency, connectivity, and security.

Infineon makes the mobile processors that run Apple iPhone. The acquisition represents an important strategic addition to Intel's portfolio and could help the chipmaker gain a stronger hold on the wireless enterprise market.

In a statement, Intel says that the deal won't affect its support for existing ARM customers. WLS will operate as a standalone business and that Intel is committed to serving WLS' existing customers, including support for ARM-based platform. Infineon will allow Intel to add 3G to its current line of Wi-Fi and 4G WiMAX offerings, its Intel Core processor-based laptops, and Intel Atom-based devices such as smartphones, netbooks, tablets and embedded computers.

The Infineon acquisition also helps putting the McAfee purchase in a more logical perspective, as Intel prepares to combine chip security with wireless capability.