Intel is planning to acquire the wireless business of Infineon Technologies for $1.4bn (£905m). Infineon’s Wireless Solutions (WLS) is a German company, which supplies chips for various smartphones such as the Apple iPhone. The formalities of the agreement are expected to be completed in the first quarter of 2011.

Following the takeover, Infineon’s Wireless Solutions will operate as a separate business and provide support to Intel’s wireless products for mobile devices. The purchased technology will facilitate applications such as Intel Core processor-based laptops and numerous Intel Atom processor-based devices such as netbooks, tablets, smartphones, and embedded computers as well as ARM-based products.

According to Paul Otellini, Intel President and CEO, the acquisition would enable the company to make available an assortment of wireless solutions ranging from Wi-Fi and 3G to Wi-Max and LTE. Otellini added that, in the current scenario, where more and more devices are connecting to the Internet, Intel is well prepared to leverage the growth opportunities that exist in every computing division.