Apple To Acquire Intel 5G Business (Updated)
Apple wants to have those modems in-house despite the truce with Qualcomm after they settled their legal issues. To do that, Apple plans to acquire Intel 5G business which was shut down after Apple and Qualcomm settled.
Apple Inc. is in advanced talks to buy Intel Corp.’s smartphone-modem chip business, according to people familiar with the matter, a move that would jump-start the iPhone maker’s push to take control of developing the critical components powering its devices.
A deal, covering a portfolio of patents and staff valued at $1 billion or more, could be reached in the next week, the people said—assuming the talks don’t fall apart.
Update: This is now official.
After trying, and failing, to crack the smartphone wireless modem business, Intel sold what remained of its efforts to Apple Thursday for $1 billion.
The iPhone maker will get the rights to all of Intel's intellectual property around modems, as well as some 2,200 new employees, along with all of their offices and equipment. Intel was the sole supplier of modems for last year's iPhones, but Apple didn't buy the business to supply the next few years of iPhone upgrades. It already struck a new, multi-year deal with Qualcomm for modem chips in April. Instead, the purchase will allow Apple to develop its own modem technology, gradually, over the next few years.
Qualcomm will not be smiling over this as TechCrunch noted: Apple wants nothing to do with this firm despite the truce.
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Apple has entered into a deal to acquire a majority of Intel’s modem business, including Intel IP, equipment, leases and employees — it's bringing over 2,200 new roles and 17,000 wireless technology patents.
The deal confirms earlier rumors that Apple would acquire the business in order to permanently uncouple itself from Qualcomm, the source of much contention for both parties over the last several years.