Intel to Acquire Infineon for a Whopping $1.4 Billion

This morning, Intel announced that it will acquire Infineon, the German mobile chip manufacturer that makes the baseband chip found in the iPhone, for .4 billion. The deal is expected to be finalized and official by the first quarter of 2011.

The acquisition will expand Intel’s current Wi-Fi and 4G WiMAX offerings to include Infineon’s 3G capabilities and Intel’s plan to advance LTE. Currently, the technology will only be used in Intel’s Core processor-based laptops and Intel Atom processor-based mobile devices.

Infineon has had a relationship with Apple since the Cupertino-based company’s iPhone was first released in 2007. This new acquisition could mean that iPhone users might see Intel chips fueling the popular smartphone.

Apple and Intel have had a few bumps in the past, as Intel has publicly slammed the iPhone, claiming that it is not at all capable of accessing the “full internet.” Additionally, Apple already manufactures it’s own custom A4 processor already based on the ARM architecture and found in the iPad and iPhone 4.

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