After speculation rose in early August, Intel has come clean and confirmed a deal to purchase Infineon Technologies in a US$1.4 billion cash transaction.

Intel’s goal is to expand its mobile and embedded product offerings to support new customers and markets that mainly include smartphones, tablets, netbooks, notebooks and embedded computing devices.

"The global demand for wireless solutions continues to grow at an extraordinary rate," said Paul Otellini, Intel president and CEO. "The acquisition of Infineon's WLS business strengthens the second pillar of our computing strategy -- Internet connectivity -- and enables us to offer a portfolio of products that covers the full range of wireless options from Wi-Fi and 3G to WiMAX and LTE. As more devices compute and connect to the internet, we are committed to positioning Intel to take advantage of the growth potential in every computing segment, from laptops to handhelds and beyond."

Intel expects Infineon's Wireless Solutions Business, called WLS, to continue growing, and remaining a standalone business.

Peter Bauer, CEO of Infineon Technologies, added, "The sale of WLS is a strategic decision to enhance Infineon's value. We can now fully concentrate our resources towards strong growth in our core segments Automotive (ATV), Industrial & Multimarket (IMM) and Chip Card & Security (CCS). This creates a great perspective for all Infineon customers, employees and shareholders."

The deal is expected to close early next year.