Intel Corp. (INTC) is in talks with Infineon Technologies AG to acquire the company’s wireless chip division, according to reports.
According to people familiar with the situation, Intel is looking to buy the German company’s wireless chip business, which produces cellular baseband chips which are used in Apple’s iPhone 4, among other wireless handsets, the Wall Street Journal reported Friday.
Infineon has also been in talks with other chip-makers, including Samsung Electronics Co. and Broadcom (BRCM), however Intel seems to be the “front-runner,” according to the Journal.
A deal could be reached within the next few days or weeks, with valuation being the primary issue, as Infineon is seeking up to $2 billion for the unit, the paper said, sourcing, “one person briefed on the situation.”
Shares of Intel fell 43 cents or 2.04% on Friday, to finish the week at $20.60. The stock was up two cents in after-hours.
