Being a chip giant, it is possibly trying to position itself as a cellular powerhouse. If all this stands true, then Intel is trying to size up Infineon as a target to its acquisitions.
Assets of Intel in the mobile market consist of an Atom media processor business. This mainly targets all the smart phones as well as portable devices. However, although Intel being the semiconductor giant lacking the cellular chipset assets which include basebands and RF chips yet, Intel is presently claimed to have been eyeing the wireless business of Infineon, which would complement its Atom business. According to M K Saadi who is a principal analyst at Informa Telecoms & Media, if the acquisition materializes, it could be interpreted in two different ways. First being that Intel could be possibly reviewing or reforming its strategy in the mobile market away. This may be because Intel is in favor of adopting various cellular technologies that could enable the company to compete on a more tough and aggressive basis in the mobile as well as the portable market. If Intel acquires the wireless business of Infineon then it could help Intel in serving all segments or sections of the mobile market. It could also help the company in positioning itself as a key mobile chipset supplier in the whole mobile market along with competing with the likes Qualcomm.
If we consider an alternative to it then Intel could also be largely interested in the baseband assets of Infineon that currently power a number of successful smart phones which includes Apple’s iPhone. When all these assets will be aligned with Intel’s Atom mobile business then it could enable Intel to offer more integrated chipsets like those offered by Qualcomm. This can also be considered as an opportunity for Intel for converting a number of its OFDM patent assets used earlier for WiMAX. As soon as this wealth of Infineon is combined with know-how of technology, the company will be able to position itself better in the LTE IPR landscape. Therefore it will be creating an absolutely innovative LTE basebands in order to power the next generation of connected devices.
However, the analyst that is M K Saadi also noted that there a number of other various assets of Infineon that could probably interest Intel on a potential basis. The Comneon unit which is well known communication Software Company that creates or manufactures architectural design for different kinds of chipsets, can also be one of the possibilities. Also, some other companies like Agere Wireless and LSI Mobility businesses in the mobile market were acquired by Infineon almost two years ago. This can possibly also represent an opportunity for Intel since the time when Infineon had failed to capitalize on this acquisition. May be Intel is thinking willing to invest heavily. Yet, in order to gain a foothold at the best position in the mobile market, the acquisition of the wireless business of Infineon can be the step that Intel needs to take for achieving all this for itself.