Intel touted as possible Infineon wireless buyer

The Financial Times Deutschland said that Infineon has hired bankers JB Morgan  to broker the sale of its long-troubled wireless chip operations.

It has named  Intel as the top of the list of potential buyers who are  going to write a big cheque for the outfit.

Infineon has had a bad time of it in the wireless industry. The outfit has not generated more than €300 million in revenue per quarter since 2006. It does, however, make some chips for Apple, and apparently now thinks it’s time to cast off the problem child.

However,  while the conventional business approach says that Intel would be interested, we do not think it is likely.

Intel spent millions on the development of Atom and so buying a flaccid product line from Infineon is unlikely to give it anything but grief.

Infineon’s chips are mixed signal and include digital as well as analogue circuits. Intel is completely uninterested in analogue development and it doesn’t have any analogue fabs.

The other problem is that all Infineon’s wireless chips are based upon ARM cores. Intel didn’t spend all that money developing Atom so that it could start paying royalties to ARM once again.

Our guess is that Infineon will have some difficulties finding a buyer for a price that it wants. The wireless chip market is a cut throat place at the moment and it looks like the sale of parts of Infineon is just one company brought down by the baying hounds of the others.