As the bidding war between Hewlett-Packard and Dell for 3PAR continues, Intel is making another major market move. The Santa Clara, Calif.-based chipmaker is acquiring Infineon’s wireless-solutions business in a $1.4 billion cash deal. The deal comes on the heels of Intel’s $7.6 billion McAfee acquisition.
Infineon’s wireless business delivers cellular platforms to global phone makers. Intel said the division will continue to serve existing customers. But Intel’s underlying goal is to tap the unit’s intellectual property to make connected computing ubiquitous, from smartphones to laptops to embedded systems.
“Intel’s forward-looking strategy is based on the idea of blending mobility with connectivity and security,” said Charles King, principal analyst at Pund-IT. “Intel has been making a pitch with its Atom processors for a bigger and bigger piece of the mobile-computing market. With this acquisition, we’re seeing a declaration of a way forward to further enhance its connectivity technologies.”
Otellini on Wireless
Paul Otellini, Intel’s president and CEO, pointed to a growing global demand for wireless solutions. As he sees it, the unit will strengthen the second pillar of Intel’s computing strategy — Internet connectivity — and empower the company 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,” Otellini said.
No Bidding War with Apple
Intel’s plans to expand its mobile and embedded product offerings to support additional customers and market segments, including smartphones, tablets, netbooks, notebooks and embedded computing devices, is no secret. Intel already has partnerships with Nokia on several mobile fronts.
Intel said it will couple Infineon’s cellular technology with its core strengths to deliver low-power platforms that…