Apple Buys Majority Of Intel’s Smartphone Modem Unit To Make Own 5G Modems For IPhones

Posted: Jul 26 2019, 5:57am CDT | by , in Technology News

 

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Apple buys majority of Intel’s smartphone modem business to make own 5G modems for iPhones
Logos by Apple and Intel

The move will pave the way for Apple to make 5G models for iPhones and other Apple devices.

Apple is set to spend $1 billion to acquire a big part of Intel’s smartphone modem business as the iPhone maker plans to ramp up its technology in preparation for the wider rollout of the 5G network.

The transaction would mean that Apple will take over Intel’s technology and equipment for making chips that link devices to cell net­works and Wi-Fi. It would also see Apple making its own 5G modems for smartphones instead of relying on third-party semiconductor companies to do it for the company.

Under the move, about 2,200 Intel employees, including engineers, will transfer to Apple to continue working on smartphone modems, but this time, for Apple’s products. Apple will also obtain intellectual property, equipment and leases from Intel.

Apple already has a portfolio of wireless technology. When combined with the assets from Intel, Apple would hold over 17,000 wireless technology patents including those that are for cellular standards protocols, modem architecture and modem operation.

Johny Srouji, Apple’s senior vice president of hardware technologies, said the deal will expedite Apple’s development of future products.

Upon closing of the transaction, Intel will still be able to develop modems for non-smartphone applications, such as for PCs, internet-of-things (IoT) devices and driverless vehicles.

Bob Swan, CEO of Intel, said the deal would allow the chipmaker “to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created.”

The announcement comes after Intel announced in April that it would exit the 5G smartphone modem business and complete an assessment of the opportunities for 4G and 5G modems in PCs, IoT devices and other data-centric devices.

At the time, Intel said it will continue making solutions for 4G smartphones. “We are very excited about the opportunity in 5G and the ‘cloudification’ of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns,” Intel CEO Bob Swan had earlier said.

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<a href="/latest_stories/all/all/81" rel="author">Mandy Jean</a>
Mandy covers the latest news in Tech and Business.

 

 

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