Intel buys Infineon wireless solutions
Intel is buying Infineon's wireless solutions unit for US$1.4 billion. The deal is likely to be concluded in the first quarter of 2011.
With Infineon's technology added to its own, Intel will be able to market chips with embedded cellular connectivity. This is expected to help Intel compensate for its heavy but thus far unsuccessful investment in WiMAX technology. More than 100 operators have abandoned WiMAX as their first choice for the coming 4G systems and have opted for LTE instead.
Intel has not been competitive in marketing the Atom mobile chip because of the Atom's high power consumption. By comparison, the ARM chip is not only puts less load on a mobile's battery, it is also smaller and cheaper than the Atom.
In addition to ARM, Intel faces stiff competition from Qualcomm with its multi-function Snapdragon chip.