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  1.    #1  
    Hi all,

    FYI.

    Take care,

    jay


    Infineon And Intel to Make A Deal This Weekend: Sources
    By REUTERS,August 27, 2010, Filed at 10:35 a.m. ET

    http://www.nytimes.com/reuters/2010/...gewanted=print

    FRANKFURT/MUNICH (Reuters) - U.S. chipmaker Intel and Infineon <IFXGn.DE> are likely to announce an agreement on the future of the German chipmaker's wireless business this weekend, three people familiar with the matter said.

    The deal is likely to happen within the next two days, the people told Reuters on Friday, adding talks were close to conclusion but could hinge on a detail.

    It was not clear whether the deal would involve a sale of the whole unit, generating more than 1 billion euros ($1.27 billion), or just a stake in the business.

    Both Infineon and Intel declined to comment.

    Infineon shares were down 3.9 percent at 4.475 euros by 1416 GMT, recouping some of the losses they posted after Intel warned that its third-quarter revenue would fall short of expectations.

    Intel shares were largely flat at $18.182.

    Based in Neubiberg near Munich, Infineon said earlier this month it was in advanced talks with interested parties about the future of its mobile chip unit, which had annual revenue of 917 million euros in Infineon's 2008/2009 fiscal year and now generates around 30 percent of the company's total revenue.

    The business had been loss-making for years but Infineon Chief Executive Peter Bauer, who took the helm in mid-2008, managed to turn the unit around.

    It ranks No. 5 in the chipset industry, far behind sector giants Qualcomm , Texas Instruments and Broadcom , and supplies chips to top manufacturers such as Nokia , LG <003550.KS> and Apple .

    Getting access to Infineon's mobile chips would help Intel expand in the booming smartphone market.

    Intels' Atom mobile chips took the low-cost, no-frills netbook market by storm but are rarely found in smartphones where other chipmakers dominate.

    "Infineon would make Intel an instant heavyweight (in the mobile space) and buy them three, four years in R&D (research and development)," IDC analyst Flint Pulskamp has said.

    Investors would welcome any proceeds from asset sales because they open the door for a special dividend, a gladly received option for Infineon's shareholders, who have not seen a payout in years.

    In addition, Infineon could use the money to invest in its other businesses: automotive, industrial and chip card security.

    (Additional reporting by Alexander Huebner; Editing by Erica Billingham)
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  2. #2  
    this is an interesting and potentially important move by Intel.

    It further reinforces my view that Intel is scared -- and that it (and M$) are finally coming to understand the peril they have found themselves in, in the new mobile environment.

    They are where where big successful companies like Blockbuster, GM, and Sony have been before -- afflicted with "incumbent's disease" -- an illness that sickens dominant profitable companies who are confronted by paradigm shift -- an inflection point as Intel's former chairman Andy Grove once wrote about.

    Please read this thread if you want to understand more on this:

    http://discussion.treocentral.com/ot...m-license.html



    Quote Originally Posted by BARYE View Post
    Intel -- by its attempt to buy into German chipmaker Infineon -- is indicating that its beginning to appreciate its vulnerability in the mobile "computing" space.

    It is ostensibly in the process of getting through its deal with Infineon, access to ARM design technology -- the RISC (reduced instruction set) architecture processor that powers virtually all smartphones and iPads.

    Nevertheless Intel continues to in parallel, design the Medfield chips based on its x86 architecture.

    Based on the history, I see no reason to believe that Intel can be competitive with ARM based procs using x86 based silicon...



    August 4, 2010
    Intel has broad smartphone strategy
    by Brooke Crothers CNET News

    Intel plans to offer a broad selection of silicon technologies for smartphones, as it seeks to grab a part of German chipmaker Infineon.

    Intel is on a mission: the world's largest chipmaker is virtually absent in one of the hottest digital device markets. And, as Apple has demonstrated with its iPhone and its own A4 chip, high-end smartphone technology is bleeding over into tablets, another hot market.

    The circumstances for Intel couldn't be more different from the PC market, where it is too dominant...

    So, what does Intel have to do to catch up with the dominant silicon players in smartphones, such as the Qualcomm and Texas Instruments? It will buy its way into the market if necessary, while moving its chip manufacturing technology forward at a blistering pace to squeeze more performance onto a smartphone chip than competitors by 2011 or thereabouts.

    But first it needs more silicon technology. A requirement for any major smartphone chip supplier is to have not only the processor--referred to as an application processor--but also have a smorgasbord of connection options--such as 3G, 4G, Wi-Fi, GPS--for customers.

    Enter Infineon's wireless unit, which Intel is making a play for in order to "fill that hole," according to source familiar with Intel's plans.

    Or, if necessary, it can make the silicon itself. Intel is currently doing an "aggressive analysis on make versus buy," according to the source. Intel does not want to lose business in the future because it "doesn't have a certain kind of protocol," the source said. In other words, Intel wants to cover all of its connection technology bases.

    And this is a long-range plan. Intel is slated to bring out a smartphone-centric chip called Medfield by early next year that squeezes what is now two pieces of silicon into one chip, using Intel's most advanced 32-nanometer manufacturing technology. This will be the first step. After Intel gets the Medfield application processor into smartphones, then it will progress to further integration beyond Medfield....

    Should the competition be worried? Maybe not yet but no one should underestimate Intel's ability to build competitive chips, whether they be for PCs or smartphones. "It can't be only incrementally better silicon. You have to have substantially better silicon to unseat the incumbent," the source said. ...
    Last edited by BARYE; 08/28/2010 at 05:55 PM.
    755P Sprint SERO (upgraded from unlocked GSM 650 on T-Mobile)

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