Intel buys Infineon mobile for $1.4 billion in tend to accelerate the 4G LTE

Intel is the worlds largest chipmaker, agreed to buy Infineon Technologies AGs wireless unit for about $1.4 billion, gaining a foothold in mobile-phone business it has struggled to crack for more than a decade.

The all-cash transaction is expected to close in the first quarter of 2011, Infineon, Europe second-largest semiconductor maker, said in a statement today.

The acquisition of Infineon unit, on the heels of Intel’s $7.68 billion purchase of security software maker McAfee builds on Chief Executive Officer Paul Otellini’s plans to break the company’s reliance on the personal-computer market. Intel wants to get its processors into smartphones, such as Apple iPhone, a handset that uses an Infineon radio chip.

Infineon is selling a unit that has struggled to turn a profit, letting it focus on areas where it can grab the biggest market share. Infineon trails San Diego-based Qualcomm Inc., which dominates the market for chips that control radio functions in phones.

Intel, which generated $3.49 billion in cash from operations in the second quarter, ended the period with more than $18 billion in reserve. The McAfee purchase is a cash transaction.