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Intel has announced that they are purchasing mobile chip supplier Infineon, who make chips for smartphones like the Apple iPhone, and own a portfolio of products which cover the full range of mobile chips including WiFi, 3G, WiMac and LTE.

The acquisition will cost Intel $1.4 billion, and will give them a strong foothold in the smartphone market, as Infineon is ranked fourth in cellular baseband shipments, with around 10.7 percent of the market last year.

latest new best cool gadgets mobile cell phone Intel Buys Mobile Chip Supplier Infineon“The global demand for wireless solutions continues to grow at an extraordinary rate,” Intel CEO Paul Otellini said in a statement.

“The acquisition of Infineon’s WLS (Wireless Solutions) business strengthens the second pillar of our computing strategy–Internet connectivity–and enables us to offer a portfolio of products that covers the full range of wireless options from Wi-Fi and 3G to WiMax and LTE (4G).”

The deal is expected to be completed by the end of the first quarter in 2011, and it has been approved by the board of directors at Intel and the management board an Infineon.

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