It looks like Intel may be taking a major plunge into the mobile space, as the company is rumored to be close to acquiring mobile chip maker Infineon in a deal that could be worth up to $2 billion.
This isn’t the first time we’ve heard this rumor, but Bloomberg sources said the deal is just about wrapped up and it could be announced as soon as this week. Infineon provides chips for a variety of high-end smartphones including the Apple iPhone 4 and the Samsung Galaxy S lineup and the final price is expected to be around $1.9 billion.
If the deal goes through, it shows the growing importance of smartphones in the computing world. Heck, if you ask Google, it will tell you that smartphones will make the desktop “irrelevant” in about five years, so Intel needs to get on the trolley.
Intel has yet to make a major splash into the mobile space, although it does have the MeeGo platform it formed with Nokia and a few Atom-based smartphones should be coming down the pike. An Infineon purchase would immediately make it a major player in an extremely competitive market that is filled with the likes of ARM, Qualcomm and other heavy hitters.
Intel has been tossing around a lot of cash lately to adjust to the be a strong player in the mobile space. It recently announced that it will spend $7.7 billion to buy McAfee and that purchase also has mobile in mind. If that deal is approves, the chip maker said it plans to embed security features at the lowest levels for mobile phones and connected devices.
One could easily argue that Intel has been behind the curve when it comes to mobile but it looks like it is gearing up for a fight. We’ll definitely keep you up to date on if this deal goes through, as well as how it could impact competitors and, most importantly, consumers.
[Via Bloomberg]