The German chipmaker on Monday, Aug 30 announced that it has agreed to sell its wireless unit for $1.4 billion to Intel Corp.
Infineon's chips are used in smart phones, including Apple Inc's high-profile iPhone 4.
Intel has informed that the wireless unit will remain a standalone business.
The deal is expected to close in the first quarter of 2011.
With this kind of a buyout, Intel, the world's largest semiconductor maker, is set to strengthen its presence in an area in which it has had limited success previously, noted Wall Street Journal.
This is also Intel's second acquisition in about two weeks after the Aug 19's acquisition of the security technology firm McAfee Inc for almost $7.7 billion in cash.