Apple announced the acquisition of chip-maker Intel’s smartphone modem business for $1 billion. There are around 2,200 Intel employees will join Apple along with intellectual property, equipment, and leases, the Cupertino-based iPhone.
The transaction is expected to close in the fourth quarter of 2019. This agreement us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created.
Apple will hold over 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation. Intel will retain the ability to develop modems for non-smartphone applications, such as PCs, internet-of-things devices and autonomous vehicles.
Apple has been working on its own chips for quite some time. Intel’s technology could help the iPhone maker accelerate its plans. Apple may have paid chip-maker Qualcomm somewhere between $5 billion-$6 billion for an agreement to dismiss all ongoing litigations, including those with Apple’s contract manufacturers. Intel working on a chipset for the iPhone maker, with the chip expected to be part of iPhones by 2020.