Wireless radio chip unit bought by Intel
The world’s biggest chip maker has come into agreement to buy Infineon Technologies AG’s wireless unit. The deal between Infineon Technologies and Intel is signed for $1.4 billion having mobile phone business. The cash transaction between the two joint ventures will close by first quarter of 2011. The statement was released by Europe second semiconductor which said it wasa good deal.
The deal will help Intel strengthen in the smart phone market as it has owned Infineon owns the wireless unit. By owning McAfee and Infineon will help Intel break through the smart phones and personal computer market. Infineon has at present earned a market value of $ 6.3 billion and shares which are 1.3% lower. Investors expect the cyclical downturn of Intel or a strategic rationale of the deal.
Intel has recently posted a profit margin of 67% especially from the PC market alone. Intel has ideas and signed deals with Nokia Oyi and LG electronics to make its mobile ambitions come true. Infineon sold the unit as it had struggled hard to gain profit and wants to focus on other areas of industrial sectors.