THE Wall Street Journal said, Ashok Kumar said, so something of this rumor must be true: Intel would be eyeing Infineon Technologies, the German company responsible for the chips baseband found on iPhones and iPads. If this acquisition is consummated, yes, the iPhone will be a gadget with ?Intel inside?.
Other companies would also be eyeing Infineon, including Samsung and Broadcom, but Steve Cheney, writing for TechCrunch, believes that Apple should give the highest bid and take its vertical integration model to its final consequences. There is nothing to indicate that this is going to happen, but we know that the Cupertino people know how to keep secrets (or ?knew?) and that there is money in the Infinite Loop safe for an acquisition of this size.
Rumors indicate that Intel intends to pay about $ 2 billion for Infineon, which was recently quoted by Citibank as a company worth between $ 900 million and $ 1.5 billion. In other words: business must be aggressive. However, Intel has a point to testify against: it has tried unsuccessfully to enter the wireless technology market with the purchase of DSP Communications in 1999 for $ 1.6 billion. This endeavor ended with the sale of the product line as a result of this acquisition to Marvell Technology Group for just US $ 600 million in 2006.
Is Intel going to enter the wireless communications market this time? With the list of Infineon customers (Apple, Nokia and Samsung, for example), the possibilities are tempting. But that will only be possible if Ma does not decide to take over the chip manufacturing baseband as it did with processors or if it doesn?t decide to use Qualcomm?s technologies rumor that occasionally comes up. Do you have any doubts that if Intel bought Infineon, it would make Apple roll over, just like it did for Mac graphics cards?