Sign in with
Sign up | Sign in

Intel Buys Infineon's Wireless for $1.4 Billion Cash

By - Source: Tom's Hardware US | B 47 comments

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.

Discuss
Ask a Category Expert

Create a new thread in the News comments forum about this subject

Example: Notebook, Android, SSD hard drive

This thread is closed for comments
Top Comments
  • 28 Hide
    Omniblivion , August 30, 2010 6:22 PM
    Intel: Taking over the world, one purchase at a time.
  • 20 Hide
    donovands , August 30, 2010 6:32 PM
    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!"
  • 19 Hide
    aracheb , August 30, 2010 6:32 PM
    if the next 2 purchases include an artificial intelligent and a satellite company i will start building my bunker....

    (Skynet)
Other Comments
    Display all 47 comments.
  • 28 Hide
    Omniblivion , August 30, 2010 6:22 PM
    Intel: Taking over the world, one purchase at a time.
  • 13 Hide
    jplarson , August 30, 2010 6:26 PM
    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.
  • 7 Hide
    partytime , August 30, 2010 6:31 PM
    Woah!? what are they going to buy next? Google?
  • 19 Hide
    aracheb , August 30, 2010 6:32 PM
    if the next 2 purchases include an artificial intelligent and a satellite company i will start building my bunker....

    (Skynet)
  • 20 Hide
    donovands , August 30, 2010 6:32 PM
    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!"
  • 4 Hide
    nforce4max , August 30, 2010 6:39 PM
    Wow they are on a spending spree. What next they buy out CISCO and later Oracle or they already do own them? :s
  • 1 Hide
    zerapio , August 30, 2010 6:49 PM
    jplarsonThey 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/arm-medfield-menlow-moorestown-atom,11177.html
  • 0 Hide
    Tomtompiper , August 30, 2010 6:56 PM
    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.
  • 3 Hide
    Moores Law , August 30, 2010 6:58 PM
    Wow every big company is buying out the little guys this is getting kinda crazy.
  • 0 Hide
    CrazeEAdrian , August 30, 2010 7:03 PM
    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 :( 
  • 1 Hide
    g00fysmiley , August 30, 2010 7:03 PM
    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 
  • 0 Hide
    burnley14 , August 30, 2010 7:06 PM
    Annual revenue of over 900 million Euro? Buying them for $1.4 billion is a steal
  • 1 Hide
    NotYetRated , August 30, 2010 7:07 PM
    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.
  • 3 Hide
    sentinelcomputers , August 30, 2010 7:19 PM
    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.
  • 9 Hide
    amster , August 30, 2010 7:20 PM
    Now everything will be labeled "INTEL inside"
  • 3 Hide
    xes , August 30, 2010 7:24 PM
    "[/citation]
    `
    arachebif 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
  • 6 Hide
    zak_mckraken , August 30, 2010 7:26 PM
    The real important question is : how many suitcases does it take to move 1.4 billion cash?
  • 1 Hide
    ares1214 , August 30, 2010 7:26 PM
    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$?
  • 1 Hide
    havoc256 , August 30, 2010 7:37 PM
    ares1214This is scaring me, soon our phones will be intel made. Our modem will be intel made, our satellites will be intel made, our internet provider will be intel. Whats next, will they make an OS and compete with M$?


    all it takes is one smart person to come along to have a great idea to put them all out of business
  • 15 Hide
    jellico , August 30, 2010 7:41 PM
    zak_mckrakenThe 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.
Display more comments