Intel buys mobile division of iPhone chip maker

Intel has been on a spending spree lately, they recently paid $7.68 billion for McAfee and now they just put down another $1.4 billion for the wireless chip division of Infineon Technologies.

Infineon Technologies is a spin off from Siemens; they make semiconductors for different industries, one of their industries covers mobile devices. Specifically, they make the processor found in the iPhone.

David Perlmutter, an Intel executive vice president, said in an interview with The Associated Press, "that the decision to sell the mobile-chip business in 2006 was the right decision at the time and that Intel is buying a more complete lineup of technologies from Infineon than those available in the business it sold. "I hope that we've learned our lessons and that we're way more focused," he said.

Now that Intel has access to a more competitive mobile processor they can make better use of their mobile operating system MeeGo that they have been working on since they acquired Wind River Systems for $885 million last year.

Before MeeGo, it was called Moblin but earlier this year Moblin merged with Maemo and the name changed to MeeGo. MeeGo has been choosen as the mobile operating system of choice by BMW, GM and a few others for their in vehicle infotainment.

With the addition of the Infineon line of processors it puts Intel as the fifth highest supplier of mobile phone processors as long as the deal goes through successfully. Everything is expected to be final by the first quarter of next year.

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13 Comments

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It'd actually make me laugh if apple decided to go with a different company for the chips used in the iphones/ipods after this.

I remember a few months ago there were rumors of Apple considering AMD processors for their computers... While I know this wasn't the reason for the purchase, I wonder if they would ever use this as leverage to convince Apple from swaying.

Wow, Intel sure has been on a buying spree. I'm curious to see what all they do with it. Hopefully they'll leverage these technologies well. Though I still think they grossly overpaid for McAfee... This purchase makes a lot more sense.

emzino said,
I don't get it... Do Intel plan to enter the smartphone Market?

They may just want to position themselves better to cover for what many see as a dwindling desktop pc market. Diversify or refocus? *shrug*

emzino said,
I don't get it... Do Intel plan to enter the smartphone Market?

With this purchase they pretty much just bought themselves the baseband tech they needed to pair with their Atom chips to offer up a mobile platform.

emzino said,
I don't get it... Do Intel plan to enter the smartphone Market?

maybe...they are strong on pc hardware why not give a shot at mobile hardware... smartphone devices are on the rise.

emzino said,
I don't get it... Do Intel plan to enter the smartphone Market?

ill just quote half the article to you...

"Now that Intel has access to a more competitive mobile processor they can make better use of their mobile operating system MeeGo..."

"MeeGo has been choosen as the mobile operating system of choice by BMW, GM and a few others for their in vehicle infotainment."