It is estimated to be valued at $1.1 to $1.4 billion. Both of them have been holding meetings also in the past few weeks in order to work out the final decisions regarding the deal. Recently it was reported that Intel is in the final stages of working out a deal in order to purchase the wireless chip business from the German firm Infineon Technologies in such a deal that would top around $1 billion and definitely put Intel in the mobile communications market in a big way.
The Wireless Solutions division of Infineon can in fact make just about anything based on RF which includes mobile phone technology and baseband devices of WiMAX. RFID chips of Infineon can be found in things like modern Chinese passports which helps keeping the masses in check. This almighty tablet can also be seen from the cappuccino company, the I pad. It ironically powers its stunted connection of 3G. The wireless business of Infineon accounts for around one-fourth of the total income of the group that is around €936 million last year but with a loss of €36 million.
Speculation will be continued on the implications until money changes hands. This move can be all the more far-reaching since Intel has seen its own WiMAX technologies lose a bit of ground as the succeeding wireless standard to LTE as far as the mobile communications is concerned. Intel’s trick here was that it geared its technology to be both wireless as well as fixed. As Intel has always had this penchant for being the leading example therefore this might stir up the WiMAX ranks for getting something which was actually done. Intel is already a manufacturer of various 3G chips. This means that it has a finger in a lot of pies which includes Apple. Also a fresh new revenue stream for the company has been made and only now it seems that it is eyeing the mobile phone communications seriously. On the other hand, Nokia might also be trying its hands at the same industry of chip making now. A Nokia Siemens network is a competitor to Infineon whereas Nokia itself has been in bed with Intel since the time they had decided to merge their mobile Linux initiatives in MeeGo.
Intel may pursue this market either through acquisitions or the alliances with Qualcomm or may be a further deepening of its alliance with the Analog Devices. Currently, Intel and Analog are designing a DSP chip which is likely to get merged into the product line of Intel group. Intel is planning that within five days of making a cash offer of $36, a share will be definitely there for all outstanding shares of DSPC common stock. The deal is now subject to be on regulatory basis and also on shareholder approval.
Neither of the two companies had anticipated any immediate changes for the organizational structure or product lines. However, the best is being expected from Intel as well as Analog.