Intel to buy Infineon wireless unit for $1.4bn

IPhone fanatic with his handset
Image caption Infineon's wireless business makes chips for Apple's iPhones

US chipmaker Intel has agreed to buy the wireless unit of German counterpart Infineon for $1.4bn (£905m) in cash.

The deal was widely anticipated; however, Infineon had been expected to obtain a higher price for the business, which makes chips for Apple's iPhones.

Infineon's share price fell 3.7% on the news, making it the day's worst performer in Germany's Dax index.

The news follows Intel's announcement on 19 August that it would buy security software company McAfee for $7.68bn.

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