Agere Systems and Infineon Technologies have formed an alliance to develop high-performance chips based on the 802.11 standard for “next-generation” wireless networking solutions.

The technology offers 20 times higher bandwidth than current wireless networks and will reach up to 54Mbit/s to support enterprise solutions, multimedia entertainment and home applications.

The collaboration includes intellectual property licensing and a mutual supply agreement. They will independently market next-generation wireless LAN products.

The solution will be targeted at manufacturers of communications equipment to meet the growing demand for high-data-rate wireless LAN systems.

According to analyst IDC, the total market for wireless LAN chips is expected to grow at a compound annual growth rate of nearly 30% from USD331m in 2001 to USD1.2bn by 2006.