The motivation for the acquisition was that Infineon is interested in LSI's baseband processors and related chipsets. But the decision was not technology driven, the reason for Infineon to spend more than €330 million is that LSI had interesting customers for its baseband chips.

In the first place, this customer is Samsung. Being one of the world's largest mobile phone manufacturers, the Korean company demands very reasonable numbers of chipsets. After the blow Infineon had to take with the insolvency of BenQ Mobile as its largest customer, the company badly needs to broaden its customer base. While Infineon recently made some inroads at Nokia and also reportedly supplies the baseband chip for Apple's iPhone, this could not offset the losses Infineon had suffered through this catastrophic event. "The move gives us a good chance to improve our market share", explained an Infineon spokesperson, adding that the company hopes to achieve economies of scale.

By: DocMemory
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