INTEL HAS AGREED to buy the wireless communications unit of Germany’s Infineon Technologies, which makes chips used in Apple’s iPhones,  for $1.4bn.

The deal is the second (in as many weeks) aimed at diversifying Intel away from manufacturing chips used in personal computers and towards security technology.

At the moment, Intel produces chips for about 80% of personal computers worldwide. However, the company has blamed the recession for a fall in sales.

Intel lowered its quarterly revenue expectation last week. Instead of the original figure of $11.2bn, the company now expects post revenue of $10.8bn.

Earlier this month, Intel purchased  the US security software company McAfee. Intel chief executive Paul Otellini explained that he believes the growth potential of software security will be massive over the next number of years, as more and more people begin to access data when on the move.

The deal between Intel and Infineon is expected to go ahead in the first quarter of 2011, subject to regulatory approval.

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