Intel buying McAfee in push beyond PC chips

Intel is making the biggest acquisition in its history with the $7.68 billion takeover of computer-security software maker McAfee, an expensive example of Intel's commitment to serve an increasing array of Internet-connected devices.

The deal will help Intel improve the security of its chips by sharpening the software that goes into them. It also opens a new revenue stream for Intel, which will sell security software alongside new chips it's developing for devices such as mobile phones, televisions and even cars. Intel is the No. 1 maker of microprocessors for personal computers and servers. Intel said security is now a fundamental component of online computing, but today's approach to security isn't adequate for the growing availability of Internet connections on mobile phones, medical devices, ATMs, automobiles and elsewhere. The industry needs a new approach that combines software, hardware and services to meet tomorrow's needs, the company said.