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Intel on the Verge of Acquiring Infineon

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Aug 29, 2010, 7:49 PM by Eric M. Zeman

According to sources cited by the Wall Street Journal, Intel could announce its intent to acquire wireless chip maker Infineon as early as Monday. The Journal's sources indicated that Intel would pay less than $1.5 billion for Infineon. Infineon makes chips and components for smartphones, and in particular supplies the cellular baseband chip to Apple for the iPhone. The Journal notes that both Samsung and Broadcom were also interested in Infineon, which hoped to fetch as much as $2 billion in a sale. Intel and Infineon haven't officially announced a deal. Intel has had trouble penetrating the market for smartphones in recent years. Acquiring Infineon would give it an instant foot in the door.

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