Information Week reports that Infineon is teaming with Nokia to create chips for the next generation of mobile broadband.

Infineon already supplies Nokia with some chips, but they will be collaborating to ensure its transceiver chips will work with Nokia’s 4G modems that use Long-Term Evolution technology. The deal could also eventually lead to Infineon supplying LTE chips for future Nokia smartphones and mobile computing devices.

This collaboration is another sign that the transition to 4G is gaining momentum. The chip space is already seeing some competition. Chip-making giant Qualcomm recently introduced a new family of multi-mode chips that can support HSPA and LTE technologies at the same time. This is important because many mobile operators that are moving to 4G networks need a 3G fallback until the LTE networks are fully built out.

Clearwire and Sprint Nextel are choosing WiMax technology for its 4G networks. The companies are already WiMax to mobile users and will reach 120 million people by the end of 2010. Other mobile operators around the world have settled on LTE for the next generation of mobile broadband. Verizon Wireless has laid out the most ambitious deployment plans among the major operators; it is aiming to cover up to 30 markets with LTE networks by the end of 2010.