Apple is to acquire chip maker Intel’s smartphone modem division for US$1-billion. The agreement comes three months after Apple ended a long-running dispute with one of Intel’s rivals, Qualcomm, to ensure it would have a pipeline of chips it needs for future iPhones to work on ultrafast 5G wireless networks.
The truce prompted Intel to abandon its attempts to make chips for 5G modems, effectively putting that part of the business up for grabs.
Apple’s purchase of Intel’s smartphone modem patents and other technology could bolster its attempt to build its own line of 5G chips and lessen its dependence on Qualcomm.
Apple’s licensing deal with Qualcomm expires in April 2025.
Apple is not expected to release an iPhone that works on 5G networks until September 2020, putting it behind rivals such as Huawei and Samsung, which already make handsets that work with the faster wireless technology.
Once the sale is completed later this year, Apple will take on around 2 200 Intel employees and 17 000 wireless technology patents.
Barring any complications, the deal is expected to close sometime between October and December.