Intel are tipped to be in negotiations to acquire Infineon’s cellular chipset business, according to the Financial Times Germany. The deal, if successful, would see Intel take control of the 3G chipset supply for Apple’s iPhone and iPad WiFi + 3G, together with certain BlackBerry and Nokia devices. However, Infineon CEO Peter Bauer is apparently opposed to a sale, but may be pressured to accept it given the company’s ailing fortunes.
Infineon have suffered in the face of strong competition in the cellular chipset business from ST Ericsson and Qualcomm, posting a mere €26m operating profit in the first half of 2010. However, the company also has successful automotive and industrial divisions, and secured €1.7bn in capital last year. Neither Intel nor Infineon would comment on the speculation.