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Intel buys iPhone processor maker

Intel has purchased part of the large wireless chip maker Infineon Technologies AG, buying the company behind the chips used in the Apple iPhone.

The company has fallen far behind in the growing smartphone processor market since their technology uses too much power, draining the phone battery too quickly.



With the acquisition today, for $1.4 billion in cash, Intel now has the wireless-chip division of the company, and an instant "in" to the market.

Intel purchased the mobile software company Wind River Systems last year for $885 million, and they have since been creating the mobile OS dubbed "Moblin," which will run on smartphones using Intel chips.

Additionally, the company recently paid $7.68 billion for the large security software firm McAfee, and the company plans to integrate security into its mobile chips.

With the addition of Infineon, Intel will be the fifth-largest supplier of smartphone processors.

Written by: Andre Yoskowitz @ 30 Aug 2010 22:46

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• 6 comments

• mike.m

  Holy crap Intel is in the buying mood, they already bought McAfee, which I think was dumb, now a company that puts chips in a low performance device.
  Am I missing something here? Intel is one of THE leaders in chips (CPU's, Wi-fi chips and what not), why not just make your own, for cheaper and better. I really don't see the point in buying all these companies unless their paying for royalties or patents, even then, they are still capable of coming up with something new. With all this money spent, especially the amount of money they spent on 45 & 32nm CPU's, this can only mean one thing, Prices are going to get STEEP.

  31.8.2010 00:16 #1

• DVDBack23

  Originally posted by mike.m: Holy crap Intel is in the buying mood, they already bought McAfee, which I think was dumb, now a company that puts chips in a low performance device.
  Am I missing something here? Intel is one of THE leaders in chips (CPU's, Wi-fi chips and what not), why not just make your own, for cheaper and better. I really don't see the point in buying all these companies unless their paying for royalties or patents, even then, they are still capable of coming up with something new. With all this money spent, especially the amount of money they spent on 45 & 32nm CPU's, this can only mean one thing, Prices are going to get STEEP.
  They already said their next gen chips would be suitable for smartphones. Guess they just got impatient?
  
  http://www.afterdawn.com/news/article.cf..._in_power_usage
  

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  31.8.2010 00:21 #2

• Pop_Smith

  Originally posted by DVDBack23: They already said their next gen chips would be suitable for smartphones. Guess they just got impatient?
  
  http://www.afterdawn.com/news/article.cf..._in_power_usage Or maybe that was a subtle hint that they had bought someone.
  
  I see it one of two ways:
  
  - Infineon now just re-brands their chips as an Intel and gets access to Intel's vast R&D resources to further develop their chips.
  
  OR
  
  - Intel can now use Infineon's knowledge of mobile processors to make their own Intel processors better (i.e. less power-hungry).
  

  http://www.megavideo.com/?v=V1VZAD0O <-- Brian Regan "Take Luck" video.
  
  "The only people who should buy Monster cable are people who light cigars with Benjamins." - Gizmodo

  31.8.2010 01:26 #3

• KillerBug

  I thought Infineon chips are just ARM processors built with old manufacturing tech. Maybe Intel does not want the embarrassment of using ARM architecture in their chips, so they bought up a company that is already doing it.
  
  ...Or maybe Intel is just trying to buy up every terrible company they can find...yeah, that seems more likely given the McAfee purchase.

  31.8.2010 02:54 #4

• Mysttic

  Quote:Intel is one of THE leaders in chips Technically Intel is THE leader, not one of em.
  
  Quote:...Or maybe Intel is just trying to buy up every terrible company they can find...yeah, that seems more likely given the McAfee purchase Actually they have been aggressive to take out competitor advantages.. They seemed to be ticked having lost that lawsuit with AMD, it cost them a lot so now its time to make sure every other feeble chipset creator is out of the market, and owned by Intel to be used or tossed. If Intel could afford to buy AMD they would, just to shut it down.

  31.8.2010 12:30 #5

• KillerBug

  Ok, I can understand them wanting to buy the whole industry (sort of)...but then how does McAfee fit into the puzzle? They don't make chips and they can't make software.

  31.8.2010 23:48 #6