Intel to be buying Infineon's wireless chip business?

Intel has a contract to acquire the wireless division of German chip maker, Infineon, according to brokerage Rodman & Renshaw’s Ashok Kumar, who said so in a note to his clients today. Intel has been long rumored to be in talks with Infineon, and this is the first hint that the deal is progressing.

Intel has no option but to go after the smartphone business — widely recognized as the next major opportunity for the chip industry. The chipmaker, as I have said time and again, is a wireless laggard. With this rumored deal, it will only be trying to play catch-up with its rivals, especially Qualcomm, which many believe is one of the best-positioned mobile chip companies because it makes both the “brains” of smartphones and the radios. Right now, Intel only has the brains.