German chipmaker Infineon is chatting to Intel about flogging its wireless chip business. German business daily Financial Times Deutschland reported that the Munich-based Infineon, which supplies chips for Apple's iPad and Nokia, Samsung and Research in Motion, is unsure whether a divestment makes sense.

While most analysts say the sale would make sense for Intel to buy Infineon's wireless business they are less enthusiastic about the idea that it is such a hot move for Infineon. Its Chief Executive Peter Bauer told Reuters in March he saw no reason why the chipmaker should not try to further develop the business.

While the mobile phone chip business is likely to be a growth driver for Infineon, it is so small that it may be as useful as a chocolate teapot when it competes with rivals such as ST Ericsson and Qualcom.

Intel however could use the technology and its huge cash reserves to do something with the technology.