Intel buys iPhone 3G chip supplier, Infineon

Intel will increase its presence in the mobile phone market with the announced $1.4 billion acquisition of the wireless division of Infineon, a significant component supplier for Apple's iPhone.

Intel and Infineon announced  that they had agreed to the deal, in which Intel will own the wireless business of Germany's Infineon Technologies in exchange for $1.4 billion in cash. The deal pertains to a range of wireless technologies, including Wi-Fi, 3G, WiMAX and LTE. Infineon makes the baseband chip found in the iPhone, and the company has had a strong partnership with Apple, supplying chipsets for Apple's smartphone since it was first released in 2007.