Apple in talks to buy Intel smartphone chip unit

Apple in talks to buy Intel smartphone chip unit

After that, Intel reportedly began searching for a buyer for its modem business, and Apple, who has always been Intel's only major customer for modems, decided to make a new deal, the Wall Street Journal reported. The deal could be worth $1 billion and include patents and employees, according to the report.

When Apple and Qualcomm settled their legal battle and reached a multiyear 5G chip deal in April this year, Intel exited the 5G phone modem business.


The Wall Street Journal reports that Apple is now in "advanced talks" with Intel for its smartphone-modem chip business. As for Apple, the company spent the previous year in legal battles with its go-to modem chipmaker Qualcomm. This would give Apple a shortcut to creating its own 5G chips for future iPhones. Apple will likely partner with Qualcomm for bringing 5G to the iPhone next year. As part of the deal, Apple would get a portfolio of Intel's modem patents and its staff.

A December report in The Information about a modem project within Apple was followed by a February report from Reuters, which indicated Apple had shifted modem engineering from its supply chain unit into its own hardware division. CEO Bob Swan confirmed to the Journal that the decision was due to Apple and Qualcomm.


Apple hasn't obviously commented on the negotiations with Intel, but taking over its smartphone chip business would indeed help the company reduce reliance on other companies and develop more parts in-house.

Apple's ugly royalties and licensing dispute with Qualcomm over modems and 5G technologies reportedly cost it at least $4.5bn to settle, according to reports just a few weeks ago.


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