FRANKFURT: Intel the U.S. chipmaker is near to finalize a deal to purchase German Chipmaker Infineon’s wireless business and the deal is expected around to pay 1 billion Euros ($ 1.27 billion), people who are well-known with the subject said on Sunday.

The company Infineon is based near Munich and it competes with U.S. companies Broadcom (BRCM.O) and Qualcomm (QCOM.O) in chipset industry, the company supplies chips to top mobile phone maker companies including Apple, LG and Nokia.

The acquisition of Infineon’s mobile chip unit would create Intel a greatly larger player I the blooming Smartphone and mobile phone device industry and also it could save years of research and development.

An Intel spokesman refused to comment on the matter.

The low cost Intel’s Atom mobile chips are found in netbook market by blizzard but the processors are infrequently found in smart phone where other chipmakers govern.

The Infineon’s wireless unit is broadly recognized for its chipset technology, but the company is seen wanting the essential funds to invest into research and enlargement required to keep up with competitors.

The mobile unit of Infineon had annual income of 917 million Euros ($1.2 billion) in its 2008 to 09 financial year and produces around 30 % of the company’s total sales ($1=.7852 Euro).