Intel was rumoured to be tilting at the wireless chip division of Infineon Technologies, less than a week after buying security giant McAfee.
A Bloomberg report, citing "three people with direct knowledge" of discussions, said the division could fetch as much as $US1.91 billion ($2.13 billion).
A separate report by the New York Times suggested a deal was close although talks could "be delayed or collapse entirely."
Infineon's baseband chips were used in smartphones including the Android-powered Samsung Galaxy S device.
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