Intel is in late-stage talks to acquire Infineon Technologies' Wireless Solutions Division
Sources 'familiar with the situation' had confirmed that the chipmaker was in talks with Infineon to the WSJ on Friday.
Infineon's wireless unit produces a wide range of radio devices, including GPS devices, power transistors and mobile phone baseband chips key to Edge and 3G data communications.. In late June, 2010, iSuppli took apart an iPhone 4 and reported that the phone's baseband chip was made by Infineon.
Other customers for Infineon's wireless components include Nokia, Samsung and Research In Motion.
According to the sources, Infineon has also discussed the deal with Samsung Electronics Company and Broadcom Corp. In 2009, Infineon saw revenues decline by 43.1 percent due to its Qimonda memory unit going bankrupt and its selloff of its Wireline Communications Unit.
A spokesperson for Infineon Technologies had no comment when ZDNet UK spoke to them on Monday. A spokesperson for Intel told ZDNet UK on the same day that "We're not commenting on rumour or speculation".