Intel buys Infineon

Intel has confirmed weeks of rumor, filing a $1.4 billion takeover offer for iPhone component supplier, Infineon’s Wireless Solutions business.

Announced last night, the move means Intel’s determined to take a slice of the emerging smartphone business.

“The global demand for wireless solutions continues to grow at an extraordinary rate,” Intel CEO Paul Otellini said in a statement.

“The acquisition of Infineon’s WLS (Wireless Solutions) business strengthens the second pillar of our computing strategy–Internet connectivity–and enables us to offer a portfolio of products that covers the full range of wireless options from Wi-Fi and 3G to WiMax and LTE (4G).”

Infineon ranked fourth in cellular-baseband shipments last year with a 10.7 percent unit share. These are the chips which enable 3G on these devices. The company also supplies Nokia and Samsung.

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