Apple to buy Intel’s modem division
iPhone. © iStock.
Apple is in the final stages of negotiations to buy the bulk of Intel’s modem chip business, The Wall Street Journal reports. The Journal says the deal, valued at $1 billion or more, could be finalized in the next week. The deal would involve the transfer of talent as well as modem-related patents. After the conclusion of the Qualcomm/Apple deal, Intel had announced it would be exiting the market. This purchase is part of Apple’s wider strategy of developing as many components as possible in-house. A team of over 1,000 engineers was already working on an in-house modem chip at Apple. The purchase of Intel’s business could help Apple reach chip self-sufficiency, breaking Qualcomm’s quasi-monopoly.
Update. Apple has confirmed the operation:
Cupertino and Santa Clara, California — Apple and Intel have signed an agreement for Apple to acquire the majority of Intel’s smartphone modem business. Approximately 2,200 Intel employees will join Apple, along with intellectual property, equipment and leases. The transaction, valued at $1 billion, is expected to close in the fourth quarter of 2019.
⇨ Ars Technica, “Apple closes in on $1 billion deal to buy Intel’s modem business: report.”