Intel has agreed to buy German semiconductor manufacturer Infineon Technologies' Wireless Solutions (WLS) business for USD 1.4 billion. WLS, a provider of cellular platforms to top-tier global phone makers, will operate as a standalone business serving its existing customers and will also contribute to Intel's strategy to make connected computing ubiquitous, from smartphones to laptops to embedded computing. Intel said it will ensure continuity of existing customer sales, projects and support, including the offering of ARM-based products as well as Intel-based application processor platforms with 3G modems. Infineon CEO Bauer said that the sale of WLS enables Infineon to fully concentrate its resources towards strong growth in its core segments Automotive, Industrial & Multimarket and Chip Card & Security. With annual revenue of EUR 917 million, WLS was approximately 30 percent of Infineon's total annual revenue of EUR 3.03 billion in the past financial year. The board of directors of Intel and the supervisory board and management board of Infineon have approved the transaction. It is expected to close in the first quarter of 2011, subject to regulatory approvals.
