This week's agreement between Intel and Infineon, to acquire the wireless technology of the second with 1.4 billion dollars. Intel will pay full amount in cash and the transaction is expected to be completed by March. What, though, is the reason that led Intel to this buy?
Portable devices have two main functional areas within them. The application processor and baseband processor. The first is the hardware comprising the processor, GPU, memory and other key pieces of equipment - something like the northbridge of computers. The baseband processor is the part that assumes, among other things, to receive the analog signal from the antenna and to translate a signal to understand the application processor.
Intel has already expertise in the application processor, so far, but could not build baseband processors. The acquisition of Infineon serves precisely that purpose so the Intel completes the puzzle portable and can now compete directly with platforms ARM.
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