CELL PHONE FORAY | Deal in­volves pur­chase of Ger­man com­pany IN­TEL CON­TIN­UES EX­PAN­SION

The Kansas City Star (Sunday) - - BUSINESS -

strug­gling per­sonal com­puter mar­ket.

In­tel has tried with limited suc­cess to get its chips into cell phones. It is hop­ing to change that by buy­ing In­fi­neon’s wire­less busi­ness, which makes chips for smart phones such as Ap­ple Inc.’s iPhone.

It’s a prob­lem In­tel is ur­gently try­ing to fix be­cause the smart phone mar­ket is too lu­cra­tive for In­tel to re­main a bit player.

In­tel’s chips are crit­i­cized as be­ing too power-hun­gry for to­day’s smart phones. The Infi- neon deal would give In­tel tech­ni­cal know-how to make chips for small de­vices that don’t drain bat­ter­ies as quickly. That ex­per­tise is par­tic­u­larly needed for chips built around the low­power ARM ar­chi­tec­ture, which is widely used in cell phones.

The deal, which re­quires reg­u­la­tory ap­proval, is ex­pected to close in the first quar­ter of 2011.

On Aug. 19, In­tel an­nounced plans to buy se­cu­rity soft­ware maker McAfee Inc. for $7.68 bil­lion in what would be the biggest ac­qui­si­tion in In­tel’s 42- year his­tory once it gains the ex­pected ap­provals. As mo­bile phones be­come in­creas­ingly en­tic­ing tar­gets for hack­ers, se­cu­rity com­pa­nies have been de­vel­op­ing ways to pro­tect those de­vices. With McAfee, In­tel would be able to bake se­cu­rity into its mo­bile chips — in­clud­ing those from In­fi­neon.

Both deals sig­nal a shift away from In­tel’s tra­di­tional mar­ket of pro­vid­ing chips to power per­sonal com­put­ers. The PC mar­ket is on shaky ground again af-

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