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Intel Buys Infineon's Wireless for $1.4 Billion Cash

by - source: Tom's Hardware US

Intel adds another specialty into its stable.

Intel knows that there's more to the new computing world than just CPUs and chipsets, so it has decided to go full force into wireless technologies through an acquisition of Infineon’s Wireless Solutions (WLS) business in a cash transaction valued at approximately $1.4 billion.

WLS will operate as a standalone business serving its existing customers, largely comprised of phone makers (yes, including those using ARM chips). The new addition of WLS to Intel will add to the chipmaker's strategy in smartphones, tablets, netbooks, notebooks and embedded computing devices.

WLS will add to Intel wireless mobility and cellular platforms for smart phones and ultra-low-cost, entry phones. WLS provides baseband processors, radio-frequency transceivers, power management integrated circuits, additional connectivity features, single-chip solutions as well as the corresponding system software.

With annual revenue of Euro 917 million, WLS was approximately 30 percent of Infineon’s total annual revenue of Euro 3.03 billion in the past financial year.

"The global demand for wireless solutions continues to grow at an extraordinary rate," said Paul Otellini, Intel president and CEO. "The acquisition of Infineon's WLS 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. As more devices compute and connect to the Internet, we are committed to positioning Intel to take advantage of the growth potential in every computing segment, from laptops to handhelds and beyond."

The sale of WLS also helps out Infineon too, as now the company can concentrate more on its energy efficiency, mobility and security solutions.

"The sale of WLS is a strategic decision to enhance Infineon's value. We can now fully concentrate our resources towards strong growth in our core segments Automotive (ATV), Industrial & Multimarket (IMM) and Chip Card & Security (CCS). This creates a great perspective for all Infineon customers, employees and shareholders," said Peter Bauer, CEO of Infineon Technologies AG.  "We all stand to benefit enormously from this deal. Thanks to the outstanding effort of the employees and the management during the last years, WLS is excellently positioned to grow further with the new owner who is ideally suited for this business."

The deal is expected to close in the first quarter of 2011, subject to certain regulatory approvals and other customary closing conditions.

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Omniblivion 08/30/2010 8:22 PM
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Intel: Taking over the world, one purchase at a time.

jplarson 08/30/2010 8:26 PM
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They previously purchased McAfee and a maker of broadband modems. Makes me wonder what the cohesive strategy is aside from penetrating markets they had little to no presence in and selling their Atom chips to them.

partytime 08/30/2010 8:31 PM
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Woah!? what are they going to buy next? Google?

aracheb 08/30/2010 8:32 PM
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if the next 2 purchases include an artificial intelligent and a satellite company i will start building my bunker....

(Skynet)

donovands 08/30/2010 8:32 PM
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Gotta love the purchasing power of giants like Intel. "Oooh shiny! You there, Accounting peon, shake the sofas in the lobby and see what you find. 1.4 billion? Great, hand it over to those grubby looking fellows over there in exchange for our shiny! Look, a squirrel!"

nforce4max 08/30/2010 8:39 PM
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Wow they are on a spending spree. What next they buy out CISCO and later Oracle or they already do own them? :s

zerapio 08/30/2010 8:49 PM
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jplarson :
They previously purchased McAfee and a maker of broadband modems. Makes me wonder what the cohesive strategy is aside from penetrating markets they had little to no presence in and selling their Atom chips to them.


I think it's very clear that they're trying to get into the handset and embedded business. There was a story in Tom's a little while ago (see link below) describing the CPU roadmap. Intel has also invested in handset OS Moblin (now MeeGo), embedded OS when it purchased purchased wind river. Now with Infineon it has expertise in radios and other stuff needed for handsets. The strategy is very clear.

http://www.tomshardware.com/news/a [...] 11177.html

tomtompiper 08/30/2010 8:56 PM
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Quote :WLS will operate as a standalone business serving its existing customers, largely comprised of phone makers (yes, including those using ARM chips).


Expect this to slowly change as they optimise for Intel chips leaving ARM to take a performance hit. It will happen slowly, but it will happen.

Moores Law 08/30/2010 8:58 PM
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Wow every big company is buying out the little guys this is getting kinda crazy.

CrazeEAdrian 08/30/2010 9:03 PM
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With all current and next gen devices moving to be wireless this is a pretty obvious/good step for Intel.... Fortunately for us this isn't going to be another show of how Intel is killing us on processors prices as there is lots of wireless competition to keep Intel in check in this field, and only one AMD to keep processors in check :(

g00fysmiley 08/30/2010 9:03 PM
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intel is definatly on the aquisition kick lately and a difinitive pattern has not emerged. so either they are

a) diverifying into several fields to utilize thier chips. perhaps adding more function to modems as mini severs, maybe including stand alone hardware firewalls and security software with its previous aquisition and using this new aquisition for futher diversification into the wireless and mobile field making full operational units... or

b) total world domination

hoping for a ... if b i hope our new overloards are merciful :D

burnley14 08/30/2010 9:06 PM
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Annual revenue of over 900 million Euro? Buying them for $1.4 billion is a steal

NotYetRated 08/30/2010 9:07 PM
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I wouldn't say they are exactly buying to diversify. I think they have an overall goal of getting their processors into the handheld market as well as whatever other low power segments they can hit.

sentinelcomputers 08/30/2010 9:19 PM
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It seems like Intel has been on a bit of a spenting spree of late. First with the purchase of McAfee and now this. I will be very curious to see if this is done purely for purposes of investment, or if there is a grand scheme that is yet to be revealed.

amster 08/30/2010 9:20 PM
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Now everything will be labeled "INTEL inside"

xes 08/30/2010 9:24 PM
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"[/citation]
`

aracheb :
if the next 2 purchases include an artificial intelligent and a satellite company i will start building my bunker....(Skynet)



I'd go with Cyberdyne Systems

zak_mckraken 08/30/2010 9:26 PM
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The real important question is : how many suitcases does it take to move 1.4 billion cash?

ares1214 08/30/2010 9:26 PM
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This is scaring me, soon our phones will be intel made. Our modem will be intel made, our satellites will be intel made, our internet provider will be intel. Whats next, will they make an OS and compete with M$?

havoc256 08/30/2010 9:37 PM
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ares1214 :
This is scaring me, soon our phones will be intel made. Our modem will be intel made, our satellites will be intel made, our internet provider will be intel. Whats next, will they make an OS and compete with M$?



all it takes is one smart person to come along to have a great idea to put them all out of business

jellico 08/30/2010 9:41 PM
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zak_mckraken :
The real important question is : how many suitcases does it take to move 1.4 billion cash?


A stack of Benjamins is 100 bills (10,000 USD), and measures approximately 6" x 2.5" x 0.5". For sake of style and security, we will assume the money is being transported in a Zero Halliburton case (those cool aluminum cases that are featured in movies), which has dimensions of 18" x 13" x 5.25". Packing as efficiently as possible, we can get the bills in stacks of 10, 3 across, and 5 front-to-back. That's 150 stacks, or $1.5M per case. Dividing $1.4B by $1.5M gives us 933.33.

SO... it would take 934 cases (with the last case containing only $500,000) to transport $1.4 billion in cash.

nuvon 08/30/2010 9:56 PM
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havoc256 :
all it takes is one smart person to come along to have a great idea to put them all out of business



Yes, one of its future CEO

rollerdisco 08/30/2010 10:16 PM
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jellico :
A stack of Benjamins is 100 bills (10,000 USD), and measures approximately 6" x 2.5" x 0.5". For sake of style and security, we will assume the money is being transported in a Zero Halliburton case (those cool aluminum cases that are featured in movies), which has dimensions of 18" x 13" x 5.25". Packing as efficiently as possible, we can get the bills in stacks of 10, 3 across, and 5 front-to-back. That's 150 stacks, or $1.5M per case. Dividing $1.4B by $1.5M gives us 933.33.SO... it would take 934 cases (with the last case containing only $500,000) to transport $1.4 billion in cash.



Thanks for doing the leg work on that. But seriously you have a bit of free time, don't you?

harshahorizon 08/30/2010 10:29 PM
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whats their vision ?.............building a empire like in Starwars.

harshahorizon 08/30/2010 10:34 PM
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hellwig 08/30/2010 10:40 PM
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I can envision a future where Intel decides to roll-out its own network. There's still some spectrum open from the transition to digital TV. Maybe Intel is eying creating its own data/telephony network that will work only with Intel systems. Intel is shrinking down their Atom, they're buying a network security firm, and now they've bought a wireless technology company. Maybe this new network will be used to control Intel's vast robotic army as they tear through cities and towns, destroying the human population in Intel's quest for world dominance. People like to compare Google to Skynet, but I'm thinking Google lacks the hardware touch.

Of course, maybe Intel just plans to start making their own cell-phones, rather than trying to convince other companies to use the Atom processor. That sounds simpler, but not dominant enough for an Intel pursuit.

Stifle 08/30/2010 10:46 PM
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Lets hope these new acquisitions lead to better advancement in technology and not just price gouging and unfair market tactics

Camikazi 08/30/2010 10:46 PM
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harshahorizon :
yeah they buy this and that but they lost on GPU side................lol


Until they buy Nvidia :P

kcorp2003 08/30/2010 11:23 PM
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I think intel have something major plan up their sleeve. Maybe next they going to sue people for patent got through buying other companies.

_Pez_ 08/30/2010 11:46 PM
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If Intel once was bigh now is going huge adcquiring new technologies, I think this might be good for competition unless they decide to limit what we can do with wireless tech., Ex. As they are planing and did with theirclarkdale and lynfield cpus.....

scook9 08/30/2010 11:48 PM
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havoc256 :
all it takes is one smart person to come along to have a great idea to put them all out of business




Or one smart AI to put us all out of business ;)

Haserath 08/30/2010 11:51 PM
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Intel Vs. Microsoft Vs. Google Vs. Apple. Who will be the ruler of the world?


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