The Epson Infineon is a 12th generation GPS transmitter/receiver built upon a 65nm manufacturing process. Just 2.8 × 2.9mm (or 25% smaller than any A-GPS on the market), it's still powerful enough to communicate with satellites indoors, tracking you to the Motel 6 before your loved one discovers you—living a second life in which you rent Motel 6 rooms just to hang out and watch bad cable alone. [News via Engadget]

AT&T has stated that problems are not on their end in the US, and European countries also stated that they've seen slowness with the iPhone on their network where every other phone was fine. Forums everywhere have been complaining about lousy reception compared to other phones in their network—even in Japan—which secures that it's a hardware issue. Our guess is that Apple will somewhere down the line either run an update to the protocol stack via an upgrade, or quietly swap out the chipset for a more mature one that may or may not be made by Infineon. [GigaOm]

There are no 14.4Mbps baseband chips commercially available in the market now—much less back when the new 3G iPhone development started
• In fact, there are no HDSPA-based mobile devices of any kind supporting more than 7.2Mbps at this point, and even those are still not common.
• Any 14.4Mbps mobile devices won't hit the market until 2009.
• 24 and 42Mbps mobile devices are, at this point, nothing but a hot fantasy that won't materialize until the next decade.

The 3G baseband chip most likely to be in the iPhone 3G is the Infineon S-Gold 3.
• The iPhone beta firmware code specifically mentions the Infineon S-GOLD 3.
• There have been multiple press and analysts' reports about Infineon getting the contract for the next version, continuing its relationship with Apple—right now the iPhone uses the Infineon S-GOLD 2 as its baseband chip.

The S-GOLD 3 tops at 7.2Mbps.

S-GOLD 3 Multimode - HSDPA, WCDMA, E-GPRS Baseband IC with embedded multimedia functions; launch in the market Q3 2007 HSDPA 7.2Mbps, WCDMA 384kbps class UL/DL & EDGE multislot class 12, including SAIC/DARP support

So yes, the Telstra network may support 14.4mbps devices, but most likely—and unless there were five million supersecret 42Mbps baseband chips that nobody knows about, hidden in an subaquatic lair in the Pacific—the iPhone 3G, already well into production ahead of its June 9 launch, will not support those speeds for a very long time to come.

Maybe the unnamed Telstra senior executive is implying that, next Xmas, Apple will introduce an iPhone with a radically redesigned motherboard using that supersecret baseband chip that nobody knows about right now. Or maybe he's just a clown.

I'll take Kangaroo dung for $500. [Channel News]

Expect to see this super-dense circuitry showing up first in Samsung phones, because Infineon is in cahoots with Samsung, along with IBM and Chartered Semiconductor Manufacturing, where the companies are teamed up in a research and development alliance to create these 65nm (and later maybe even 45nm) cellphone chips.

Infineon unveils 65nm handset chip [DigiTimes]

Well, looks like Microsoft has found a good scapegoat for its nasty Xbox 360 shortage with German chipmaker Infineon. Basically, the company is being blamed for not making enough chips at the right speed for the 360—many of them running slower than the required 700 megahertz. The problem, it seems, was all the time it took to sort out the good GDDR3 memory chips from the bad. Well, now you know.

Infineon blamed for Xbox shortage fiasco [Inquirer]