Apple is rumored to be in talks to buy a key section of Intel’s modem business, a division that was effectively shut down after Apple and Qualcomm settled their worldwide legal dispute in April.
Per sources close to the story, it’s been said that Apple is looking to procure Intel’s German operation, which serves as the heart of its modem business.
The German wing is comprised of engineers from Infineon’s wireless technology branch, which Intel purchased for $1.4 billion in 2011. This group is said to have provided baseband chips for iPhone from 2007 to 2010.
Negotiations are said to have been ongoing since 2018 and, while tenuous, could allow Apple to acquire hundreds of veteran modem engineers. This, in turn, would allow Apple to work on its 5G modem.
Intel has offered the following comments:
“We have hired outside advisers to help us assess strategic options for our wireless 5G phone business,” an Intel spokesman said. “We have created value both in our portfolio of wireless modem products and in our intellectual property. We have received significant interest in the business but have nothing more to say at this time.”
The deal, if successful, would also include patents and products, according to the sources.
Intel exited the smartphone modem industry in April, saying the way forward in that segment was no longer tenable after Apple and Qualcomm settled a legal battle involving patent royalties and licensing. As part of the arrangement, Apple agreed to a one-time payment worth between $4.5 and $4.6 billion in exchange for multiyear chip supply and six-year licensing agreements.
Stay tuned for additional details as they become available.
Via AppleInsider and The Information