Intel to buy Infineon’s wireless unit for $1.4 billion

The move gives Intel a foothold in the rapidly growing market for mobile phones, in which success has eluded the chip giant for more than a decade. It also signals that Intel’s mobile processor, dubbed the “Atom,” has to date largely been a failure. Intel eventually intends to integrate Infineon’s technology with the Atom processors to create an all-in-one mobile processor.

“The sale of WLS [Wireless Solutions Business] is a strategic decision to enhance Infineon’s value. We can now fully concentrate our resources towards strong growth in our core segments Automotive, Industrial & Multimarket and Chip Card & Security,” said Peter Bauer, CEO of Infineon Technologies, adding that both sides stand to benefit enormously from the deal.