Known as the leading manufacturer of computer chips, it was only a matter of time before Intel set its sights on the mobile technology industry. The company has recently agreed to purchase the wireless chip division of Infineon Technologies AG, a German semiconductor and system solutions provider. At a whopping price of $1.4 billion, the two companies expect to close the deal in the first quarter of next year.

80 percent of today’s personal computers are branded with an Intel processor. However, despite its rapidly growing popularity, the company opted to stay away from mobile technology. One reason is that Intel has focused too much on the creation of powerful chips, which while effective on PCs, tend to drain batteries quickly – something smart phone makers and their consumers have little use for.

With the purchase of Infineon Technologies’ mobile chip division, Intel can finally join the mobile technology bandwagon without a hitch. The technology gained through the deal would be incorporated in Intel Core processor-based laptops, as well as Intel Aton processor-based devices such as smart phones, netbooks and tablets. With Infineon Technologies, Intel stands to become the fifth biggest suppliers of mobile phone processors.

Intel plans to further expand its influence within the mobile market by purchasing more established enterprises. It had already bought mobile software maker, Wind River Systems last summer for $884 million. Its first project is the development of Mobin software, an open-source program designed to run on mobile devices that use Intel chips.

With the rising popularity of mobile technologies comes the looming threat of mobile hackers. Intel is already thinking ahead, as it also plans to purchase anti-virus software company McAfee. With this acquisition, Intel would be able to integrate security with its chips.

Intel used to have a division that created chips for smart phones, but it was sold off several years ago to cut costs and redirect efforts toward its core business. Now that Internet use on mobile phones has boomed, and with so many companies already lunging at the opportunities it has opened up, it is high time that Intel catch up.