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Infineon's Chips in LG Mobile Phones Infineon's loss-making telecoms business	By Anca Rusu, Technology Editor 24th of July 2006, 07:17 GMT Adjust text size:


Infineon recently announced it will soon supply mobile phone chips to Korea's LG Electronics, the world's fourth- handset manufacturer, in order to boast Infineon's loss-making telecoms business, informs Reuters. Furthermore, Infineon lost some time ago its prime mobile chip customer - Siemens, when the latter has been acquired by BenQ, the Taiwanese company. But BenQ Mobile isn't the sole Infineon's customer, as also Nokia and Samsung mobile phones benefit from the same chips and, of course, technology. "They're desperately scrambling around," said Sanford Bernstein analyst Scott Geels cited by Reuters, adding that he estimates that this agreement should increase the profits starting this quarter. "Infineon, which said early this year it had won a number of unnamed new customers for its loss-making communications chips business, said it would provide the platform and the main components for LG's new-generation EDGE phones. Infineon had beaten Texas Instruments to win the deal, and that two-thirds of LG's new phones would in future be EDGE handsets," reports Reuters. "They're in a race against time and if they can't replace the amount of revenue they lost from that business in the next year, year and a half, they're probably going to have to sell it or shut it down," Geels said. It appears that, according to the deal, Infineon will boast LG with the baseband processor, the most important chip component in mobile phones, as well as the RF transceiver, which selects frequencies, power management circuitry, Bluetooth chips and EDGE software.

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