Intel’s Wireless Chip Unit Will Be Bought By Apple For $1 Billion
Apple at present announced that it’s going to purchase nearly all of Intel’s smartphone modem business for $1 billion. The acquisition will carry 2,200 Intel workers under Apple’s umbrella, together with varied intellectual properties, leases, and tools. After the transfer is full, Apple will maintain more than 17,000 wireless technology patents, and Intel will still have the ability to develop modems for PCs, automobiles, IoT devices, and different products that are not smartphones. The confirmation of the sale comes after a collection of on-again-off-again reviews and rumors in regards to the deal going back a number of months. However, a Wall Street Journal report earlier this week made it appear all-but-certain that the finalization of the deal was proper around the corner.
Intel built its wireless modem arm out of an acquisition of Infineon’s wireless business nearly a decade in the past. The corporate aimed to compete immediately with business leader Qualcomm, which immediately dominates modems in smartphones and plenty of different devices. However, Intel by no means managed to beat its rival within the smartphone space. Apple has traditionally used Qualcomm modems in the iPhone. However, it has recently suffered a painful and litigious relationship with Qualcomm.Apple started shipping iPhones with Intel modems, and Qualcomm sued for patent infringement, amongst different issues. The litigation was dropped in April, main Intel to say it might exit the 5G smartphone modem business; Apple’s make-nice with Qualcomm meant the Cupertino firm would not be dependent on Intel, resulting in questions about the viability of Intel’s business.