In a bid to strengthen its position in the smartphone market, chip giant Intel is moving to acquire the wireless semiconductor unit of Infineon for $1.4 billion.
The acquisition follows Intel's recent decision to purchase security software vendor McAfee for $7.7 billion in order to offer enhanced security capabilities with the chip designed for mobiles.
Germany based Infineon designs semiconductor chips for several industry leading smartphones including the Apple iPhone.
Infineon will offer to Intel its existing clientèle and technology to develop state-of-the-art semiconductor chips for smartphones and tablet devices.
More than 80 per cent of desktop PCs worldwide run on Intel designed processors, far more than for archrival AMD. However, the US giant has up to now, failed to establish itself as a major player in the lucrative smartphone market where UK-based ARM rules supreme.
In a statement to The Independent, Vijay Rakesh, an analyst at Sterne Agee, said that “The acquisition provides an instant footprint and a platform offering for Intel to enter the emerging smartphone markets.”