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After nearly a month of rumors foreshadowing the deal, it's now official: Intel is buying Infineon's wireless unit for $1.4 billion in an all-cash transaction that will close in the first quarter of next year.
The reason that Intel is buying Infineon at this point in time is that the company's new 32nm mixed-signal SoC process will enable it to eventually put both the application and baseband blocks on the same chip. So, at some point, Intel will be able to offer what's essentially a complete smartphone on a chip—CPU, GPU, northbridge, I/O hub, analog DSP, and even RF signal processing.