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Intel Corp. has agreed to buy Infineon Technologies AG's wireless unit for approximately $1.4 billion in cash, the companies said Monday.

The unit will operate as a stand-alone business of Santa Clara-based Intel (NASDAQ: INTC). Infineon's chips are used in smart phones including Apple Inc.'s iPhone 4.

The technology will expand Intel's Wi-Fi and 4G WiMAX offerings and be used in Intel Core processor-based laptops and Atom processor devices, including smart phones, netbooks, tablets and embedded computers.

"The global demand for wireless solutions continues to grow at an extraordinary rate," Paul Otellini, Intel's president and CEO, said in the announcement. "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 business card design.

The deal is expected to close in the first quarter of 2011, subject to regulatory approvals and customary closing conditions.

It is the second major acquisition for Intel in recent weeks. The company on Aug. 19 announced it had agreed to acquire the security software maker McAfee Inc. (NYSE: MFE) for approximately $7.68 billion.

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