Another long-standing rumor becomes reality as chip giant Intel continues to fling cash about as part of its acquisitions orgy. The latest assimilation - Infineon's WLS wireless division.
The takeover is valued at $1.4 billion. It gives Intel a significant foothold in the mobile market.
Infineon is currently ranked #4 in cellular-baseband shipments in 2009, with the company grabbing an impressive 10.7% unit share. The company supplies the baseband silicon that allows the iPhone and iPad to connect to 3G networks. Infineon also supplies silicon to companies like Nokia and Samsung.
Interestingly Apple is becoming increasingly reliant on Intel, which the chip giant now also supplying all the CPUs for the company's Mac range of desktops and notebooks.
One consequence of this deal, resulting in Apple being further tied to Intel, could be the possibility that Apple now goes off an acquires a comms chip maker of its own, like it did for the processor in the iPhone and iPad. That way the company secures a greater portion of the supply chain.
The board of directors of Intel, along with the supervisory board and the management board of Infineon have all OK-ed the deal. The deal is expected to be completed by the first quarter of 2011.