A PYMNTS Company

US: Intel stops making chips for 5G smartphones

By  |  April 17, 2019

Intel announced Tuesday, April 16, that it will no longer make 5G modems for smartphones. Instead it plans to determine whether it should make 4G and 5G modems for PCs and other internet-connected devices.

Bob Swan, Intel’s CEO, said in a news release that there was “no clear path to profitability and positive returns” for the smartphone modem business.

“5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property,” Swan said. “We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world.”

The company stated it will keep its investment in its 5G infrastructure business.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.