Updates to this story
Maker of chips and buyer of McAfee Intel has decided that yes, it definitely does want to put its monkey where its mouth is and splash out on Infineon, paying $1.4 billion for its wireless business, WLS.
Rumours have been afloat in the technology press for quite some time that Spintel was out to buy Infineon, and even more recently they have been falling themselves to say that a deal is imminent. It has apparently beaten Samsung and Broadcom to the post on the purchase, two companies with business and manufacturing models closer to Infineon. The baseband behind Infineon is what Intel's looking at.
Intel says it is sticking to its guns on WiMax despite worried wobbles from Taipei topdogs in the far east. Otellini reckons that snapping up WLS will give it a serious edge in all flavours of wireless, from 3G through to WiMax and LTE as well.
WLS is the huge wireless division of Infineon. Infineon spokebloke and CEO Peter Bauer says that it now wants to focus its resources on other gubbins, particularly in the Automotive, Industrial & Multimarket and Chip Card & Security spaces. Quids in, he says, shareholders should be chuffed.
The board of directors of both companies have approved the deal. If it makes its way past regulatory red-tape, which we suspect it will, it is expected to close in the first quarter of 2011.