Intel buys Munich LTE firm through Infineon -

Things are hotting up between rivals Intel and Qualcomm in their respective bids to position themselves in the wireless market with the news that Intel’s recently acquired Infineon is taking over a company specialising in in LTE communications.

Chipmaker Infineon has been working with Dresden based Blue Wonder over the past year and a half on the development of baseband technologies for LTE mobile standard and will now take over the company, according to eetimes.

"Blue Wonder's special LTE know-how complements the long-standing LTE development activities of WLS. Infineon WLS will take over all the employees of Blue Wonder Communications. Both parties have agreed not to disclose the price or further details of the transaction," a spokesman for Infineon said.

The news comes not long after it was announced that Qualcomm would itself be expanding into Germany, a move that is likely to annoy Intel. While Intel is the star for chips worldwide, it has not managed to crack wireless communications whereas Qualcomm has a firm foot in the door. 

It had previously been thought that Intel was committed to LTE rival WiMAX. However Otellini recently said Intel would consider LTE as an option, too - aside from delaying and delaying its WiMAX commitments in Taiwan, this buy is the first tangible evidence.

"In effect Intel bulks up more in LTE cellular," said Will Strauss, president and principal analyst with Forward Concepts Strauss.