With Intel’s recent $7.68 billion takeover of McAfee many wouldn’t have been expecting the latest $1.4 billion acquisition of Infineon Technologies AG’s wireless unit.
Intel’s purchase of Infineon marks an expansion into the wireless device market, an area which has been a struggle for them in the past. This purchase means that Intel now have a portfolio of products covering a full range of wireless options and also gives them access to the wireless chip customers, including Apple. Analysts have said that Intel have to push innovation to remain competitive in this industry.
Jon Erensen, Gartner research director told the Wall Street Journal “For Intel, this is basically them going all in on wireless”. Long term investment is going to have to be a focus of Intel, even with the assets that Infineon have.
Intel are also working with Nokia Corp. on a new mobile operating system called MeeGo and have spent $884 million last year to buy Wind River Systems, a fast growing software firm that helps to run cellphones and other embedded systems.