Apple is all set to acquire Intel’s smartphone modem business by the end of the fourth quarter, this year – announced the Cupertino tech giant recently. This comes after Apple settling up its disputes with another global chipset maker Qualcomm and coincidentally Intel quitting its 5G smartphone modems at the same time. Regardless, the new announcement from Apple suggests us, the company along with Intel have signed an agreement to acquire a majority of Intel’s smartphone modem business, which translates to around 2,200 Intel employees will be joining Apple alongside a $1 Billion transaction value by the end of this year.
The signed agreement between Apple and Intel further suggests that the tech giant will acquire all the infrastructure including – intellectual property, equipment, and leases regarding smartphone modems of Intel. Further, the current patents and upcoming wireless technologies developed by Intel will be acquired by Apple, which includes around 17,000 wireless technology patents of supposed cellular standards of modem architecture and modem operations as well. However, Intel will still make modems for non-smartphone products like PCs, internet of things and autonomous vehicles too.
As aforementioned, this comes after Apple settling with Qualcomm; earlier reports suggested Qualcomm would be making chipsets including 5G modems for iPhones in 2020. Now, that Apple had supposedly acquired Intel smartphone business, we can expect the Cupertino tech giant making its own chipsets instead of wholly relying on Qualcomm in the future. Also, there were reports previously indicating Apple starting its chipset making facility in San Diego, where Qualcomm is headquartered. Nonetheless, Intel says the acquisition will help the company’s focus to develop other 5G enabled products while Apple handles the smartphone modem business. Stay connected to PhoneRadar for more such interesting updates.