Infineon, Intel in talks over mobile unit: report

FRANKFURT (Reuters) - German chipmaker Infineon IFXGn.DE is in talks with Intel INTC.O about a sale of its wireless chip business, German business daily Financial Times Deutschland reported on Monday, citing sources at Infineon.

Infineon and Intel were not immediately available for comment.

Munich-based Infineon, which supplies chips for Apple's AAPL.O iPad as well as components for Nokia NOK1V.HE, Samsung 005930.KS and Research in Motion RIM.TO, is unsure whether a divestment makes sense, the paper said.

Some analysts have said it would make sense for Intel to buy Infineon’s wireless business, but Infineon Chief Executive Peter Bauer told Reuters in March he saw no reason why the chipmaker should not try to further develop the business.

While the mobile phone chip business is likely to be a growth driver for Infineon, it may be sub-scale when compared with other rivals such as ST Ericsson ERICb.ST and Qualcomm QCOM.O, FTD said.

Reporting by Christoph Steitz; Editing by Erica Billingham