Negotiations between Infineon and Intel over the sale of the German chipmaker's wireless business unit that's used in both the Apple iPhone and iPad have reached an advanced stage, several people familiar with the matter said. "An agreement appears to be more and more likely," one of the people told Reuters. Infineon's wireless unit makes chips, which are used in mobile phones manufactured by companies such as Samsung, LG, Nokia and Apple.
Infineon has mandated J.P. Morgan to sound out options for the unit, the sources said, adding the business is valued at around 1 billion euros. Infineon, whose supervisory board is scheduled to meet on Wednesday, and Intel, declined to comment.
Some analysts have said the move could make sense for Intel as a way to expand into the booming smartphone market.
But Infineon Chief Executive Peter Bauer has repeatedly said he saw no reason to sell the mobile chips unit and on Wednesday said: "We are very happy with the wireless business."