According to reports, negotiations between iPhone chip maker Infineon and Intel are now at an advanced stage.

Earlier this week Infineon said, “Infineon Technologies AG is in discussions with interested parties about a transaction concerning Infineon's segment Wireless Solutions. A significant progress has been made within these discussions."

According to a Reuters source, "An agreement appears to be more and more likely."

Intel is tipped to be a possible buyer as analysts say the company wants to crack the smartphone and tablet market.

Infineon's wireless unit manufactures chips which are used in mobile phones from Apple, Samsung, LG and Nokia.

Intel has so far refused to comment on the speculation.