Apple To Acquire Intel’s Smartphone Modem Unit


Apple has announced that it is acquiring the majority of Intel’s smartphone modem business.

As part of the deal, around 2,200 Intel employees will join the tech giant, who will also acquire intellectual property, equipment and leases. The $1 billion transaction is expected to close in the fourth quarter of 2019, subject to regulatory approvals and other customary conditions.

“This agreement enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created,” Intel CEO Bob Swan said in a press release. “We have long respected Apple, and we’re confident they provide the right environment for this talented team and these important assets moving forward. We’re looking forward to putting our full effort into 5G where it most closely aligns with the needs of our global customer base, including network operators, telecommunications equipment manufacturers and cloud service providers.”

Once the transaction is complete, Apple will hold over 17,000 wireless technology patents, as well as the engineering labor and talent behind Intel’s work on the modem chips for 5G technology, saving Apple years of development work. Last month it was revealed that Apple is planning on launching three iPhones in 2020, two of which will be 5G compatible.

Intel will maintain the ability to develop modems for non-smartphone applications, such as PCs, internet-of-things devices and autonomous vehicles.

“We’ve worked with Intel for many years and know this team shares Apple’s passion for designing technologies that deliver the world’s best experiences for our users,” said Johny Srouji, Apple’s senior vice president of Hardware Technologies. “Apple is excited to have so many excellent engineers join our growing cellular technologies group, and know they’ll thrive in Apple’s creative and dynamic environment. They, together with our significant acquisition of innovative IP, will help expedite our development on future products and allow Apple to further differentiate moving forward.”



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