Striving to take over the mobile market, Intel, the world’s largest chipmaker purchased Infineon – major chip supplier to smartphones for Apple, Nokia, Samsung, and others at a price of $1.4 billion. Infineon is a German based company that plays major role in manufacturing Baseband chips that enable wireless broadband, or 3G, on smartphones and tablets.This acquisition process might be completed by 2011, however Infineon is expected to be an independent company despite the take over.

Intel announced that it would expand its mobile and embedded product offerings in the smartphone arena along with the other computing devices. As per the announcement made, Intel- Infineon deal would buy security software vendor McAfee for $7.68 billion, and also acquire the cable modem unit of Texas Instruments (amount undisclosed). Intel expecting to be a standalone business and will continue manufacturing Atom Chips, ARM-based products, Intel-based application processor platforms with 3G solutions as well.

Intel is also expected to bring in a new smartphone centric chip called Medfield by early next year that would use Intel’s most advanced 32-nanometer manufacturing technology. Once this application processor is embedded into smartphones, Intel will proceed further into integration process. Though Intel is newly paving its path in the wireless market, we are sure that it would provide tough competition to the other chip manufacturers in the industry. Let’s wait and watch whether it really does!