Intel has agreed to buy wireless telephone chip maker DSP Communications Inc, in a $1.6 billion (€1.5 billion) deal, the companies said yesterday, the latest in a series of aggressive moves by Intel to move beyond its traditional microprocessor business.

Under the terms of the deal, Intel, the world's largest chip maker, will pay $36 in cash for each share of DSP, which is based in California but does most of its research and development in Israel.