Inteligence: Intel’s Major iPurchase

It has been obvious to those who have watched Intel's development in the last couple years that mobile and wireless technologies is at the heart of their contemporary business model, but this is going to be true of any company in IT.  The iPhone and other smart phones have become an increasingly valid market for the development of microchips, and the abilities shown by the iPhone 4 and the iPad mark the need for fully realized processing abilities under the hood of these miniature devices.  It could be that Intel would consistently try to develop their own chipset to compete in the market, but that is not the way of the tech business model.


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The murmuring has been true: Intel has purchased the wireless department of Infineon Technologies at the tune of $1.4 billion.  For those that known the iPhone's circulatory system well they will note immediatley that Infineon Technologies develops component parts for the iPhone and the iPad.  This German company has been in charge of the important 3G wireless chips as well as the baseband processors, which marks it as a major contributor to the final product synthesis of the iPhone and iPad. 

The purchase makes material sense when looking at Intel's position in the chip market.  Intel has made dramatic strides over the years in an effort to develop their own chips for this coming market, but because of the specific needs of the iPhone the ARM technology has always been a better fit for Apple's design.  Intel's own X86 construct is dramatically different than that provided by ARM, which made it difficult to shift in the direction of the iPhone.  In an effort to remain at the top of the market the take over of Infineon Technologies was only the logical next step. 

Do not expect Intel to just sit back and allow Infineon's Technology to stand on its own.  This is only the beginning of what should be Intel's opportunity to build on Infineons's technology, which will turn them toward creating a chip set with multiple functions.  Still, don't expect any new chips inside your iPhone or iPad anytime in the near future.

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