German chip-maker Infineon is in talks with Intel over the sale of its mobile-related chip business, Financial Times Deutschland reports today, citing sources at Infineon. Munich-based Infineon supplies chips to high-profile device-makers such as Apple, Nokia, Samsung and Research In Motion, but its mobile business competes with much larger rivals such as Qualcomm and ST Ericsson. Infineon Chief Executive Peter Bauer told Reuters in March he saw no reason why the chipmaker should not try to further develop the business. However, analysts believe the business would be a good fit for Intel, which is attempting to grow its mobile business. Neither Infineon nor Intel has yet to comment on today’s report.

Intel’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. In January, it announced a return to the mobile device space after an absence of four years via a partnership with handset-maker LG. Intel unveiled the second-generation of Atom processors earlier this month noting that they were built to use as little power as possible to ensure they were fit for mobiles. The first devices using new processors are expected to appear in the second half of 2010. Click here to read our recent blog on Intel’s mobile strategy.