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Intel's Infineon WLS Buy Signals Smartphone Market Assault

September 2010 | M&A Analysis

US computer chipset manufacturer Intel Corporation has agreed to buy the Wireless Solutions (WLS) unit of its German-based rival Infineon Technologies for around US$1.4bn in cash. Highly focused on WiMAX for next-generation wireless broadband devices, Intel would appear to be stepping away from 4G to focus on the much larger 3G/3.5G market instead. However, CFW believes that the WLS buy is aimed at obtaining traction in the high-volume smartphone market and does not presage a strategy to abandon WiMAX.

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