World’s leading chipmaker Intel Corp has settled upon acquitting Infineon Technologies AG’s wireless division where it will shell out $1.4 billion to gain a strong position in the mobile phone trade as it had been struggling for over a decade for the same.
Europe’s second leading semiconductor manufacturer, in a statement, said that the all-cash deal would most likely close in the initial quarter of 2011.
It seems that Chief Executive Officer, Paul Otellini’s plans dared to change the firm’s dependence upon personal computer market, due to which the firm went forward with acquirement of Infineon.
Intel desires that its processors be used in smartphones, for instance iPhone by Apple, which is a phone using Infineon radio chip.
The firm is trying to see that unit, which for long has been trying to turn into profit and further allowing focusing on such regions where the best of the opportunities to get hold of market share is available.
Infineon is following Qualcomm Inc, which is based in San-Diego, since Qualcomm has the supremacy over the market for chips that has a total control over radio functions in phones.
Intel reported 67% profit for the quarter and over 90% of its sales were in the PC market.