German chipmaker Infineon has hired JP Morgan, the US investment bank, to sound out a possible sale of its mobile business, reports the Financial Times. People close to the situation said at least one possible buyer had approached the chipmaker, which was now looking at all options for the unit. However, a sale is seen as unlikely as Infineon is set to demand a high price after a successful restructuring, which saw the business return to profit in the first half of the year. Bankers estimate that the unit, which made EUR917 million in revenues last year, could be worth around EUR1 billion. The unit supplies chips for Apple’s iPad and components for Nokia, Samsung and Research In Motion phones, but competes with much larger rivals such as Qualcomm and ST Ericsson.

The firm, which declined to comment, had considered a sale of the mobile unit early last year, at a time when Infineon was struggling to survive amid huge losses. However, in March, CEO Peter Bauer said he expected the unit to grow with its customers in the coming years and said he saw no reason why the company should not expand the business. One high-profile firm linked with Infineon’s mobile chip business is Intel. The US chipmaker’s processors run about 80 percent of the world’s PCs, a market that accounts for around 90 percent of the company’s sales. However, it is positioning its new processor – Atom – for smartphones and other portable devices. Analysts believe that Infineon would be a good fit for Intel as it looks to grow its mobile business.