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Intel seals purchase of Infineon wireless unit

Chip giant says Infineon's former wireless solutions business--now a standalone unit called Intel Mobile Communications--will bolster its Wi-Fi and 4G WiMax products.

Intel has completed its $1.4 billion acquisition of Infineon Technologies' wireless solutions business.

Now that the deal is done, Intel said today, Infineon's former business will be called Intel Mobile Communications and will operate as a standalone business in Intel's Architecture Group "to enable continuity of existing customer sales, projects and support, including ARM-based products."

Intel reported that the division will help bolster the company's existing Wi-Fi and 4G WiMAX products with Infineon's 2G and 3G business. Together, Intel hopes to "accelerate 4G LTE." The new division will work on solutions for both Intel- and ARM-based mobile devices.

Intel announced the deal to buy Infineon's wireless business in August. At the time, Intel said the acquisition would help it capitalize on the wireless solutions market that "continues to grow at an extraordinary rate."

Infineon has had some success in the wireless connectivity arena for smartphones and tablets and, in 2009, had 10.7 percent market share in cellular-baseband shipments, the Linley Group reported last year. Infineon sold baseband chips to Nokia, Apple, and several other device makers.