Rumor is going around that Infineon might be considering selling its cellular chipset business to Intel. Apparently Intel is quite interested in getting into the mobile chip business. That being said, Infineon CEO, Peter Bauer, has been described as being against the deal, since it would be letting go of a core business, though low revenues might create enough pressure to make the company open to options. If such a deal did go through, Intel would suddenly be a major player in the cell phone market, as Infineon currently provides 3G chipsets for many key devices, including the iPhone, iPad, and devices from RIM and Nokia. Of course, there is the worry that Intel might give favorable pricing to companies who buy cellular hardware bundled with Atom processors, affecting the competition. That being said, this is still very much a rumor at this point, so it’s to be taken with a pinch of salt. Neither Infineon or Intel has commented on this rumor yet.
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