Intel Dips Their Chips
Into Smart-chip Maker Infineon
Being the tech junkies that we are here at dayTrending.com, we have been watching Intel's latest acquisition closely and feel the time is right to report a significant trend. A friend of mine called to talk shop and eventually he mentioned Intel and his fascination with the tech giant's latest buy. He went so far as to say, "They're done, it's over(regarding Intel's future viability as a powerhouse)." So I just had a few minor issues to point out in Intel's defense, like them dropping somewhere around $1.4 billion dollars for part of the German maker of chips that go in smart phones before we start kicking dirt on them. So we all threw in a little research and here is Scott's article:
Intel (NASDAQ: INTC) is currently busy acquiring a portion of German chip maker and wireless solutions provider Infineon Technologies. Infineon produces the chips that allow for wireless internet for smart devices and one of their biggest customers is Apple and the smart chip for the Apple iPhone. The aquisition of the wireless solution department called WLS will reportedly enable Intel to strengthen and consolidate its position on the mobile phone market, which has traditionally not been an area of influence for the largest maker of microprocessors in the global market.
Infineon released a report to the press that stated Intel is going to pay $1.4 billion cash to be finalized in the first quarter of the next fiscal year. Infineon maintains their goal is that their own position would be strengthened in the automotive, industry and security technology markets. Infineon Technologies AG is based in Neubiberg, Germany with many subsidiaries in the US, Asia-Pacific and Japan.
Intel's capabilities will include support of its current WiFi, and WiMAX technologies, but also 3G and LTE. The current customers of WLS will be served continuously and support for ARM-based platforms will continue. This enables Intel an entire new direction for 3G applications, not only netbooks and notebooks but also the entire smartphone market will have a new giant competitor. Yes Intel Corp. has manufactured the main processor chips for 80% of the PC market today, but is the trend for smart phones and smart devices as the new gateways to the internet strong enough to crash a giant or cause it to waste away in a shrinking market? Not based on this vision of the future and new direction the company is taking. I say to all the skeptics, IBM used to make typewriters. It looks like Intel is equally adapting and positioning for great success in the future.