March 9, 2021

Apple acquires Intel's modem business for $ 1 billion

The multinational Apple announced Thursday an agreement to acquire the Intel smart phone modem chip business for $ 1 billion, according to a statement.

Based on the agreement, 2,200 Intel workers will go to Apple, in addition to equipment and intellectual property.

The apple company announced in its statement that it intends to close the operation in the fourth quarter of the year.

The acquisition comes after in April, Intel announced its intention to abandon the development and production of modems for smartphones by not seeing profitability in the business.

Apple was the only customer of this Intel business.

In the statement on Friday, Intel CEO Bob Swan said the agreement allows the company in Santa Clara (California) "to focus on the development of technology for the 5G network."

Intel will maintain the ability to develop modems for devices other than smartphones, such as personal computers, autonomous vehicles or devices related to the internet of things.

Apple and Qualcomm announced an agreement in April to close a long dispute over which the San Diego (California) company will again provide chips to the iPhone manufacturer for "several years," among other things.

However, it is believed that Apple works for the development of its own 5G chips, so the operation with Intel would be vital to save years of work.

According to the announcement, Apple will hold 17,000 wireless technology patents after the operation closes.

"Apple is excited that so many excellent engineers join our growing group of cellular technologies," said Apple Hardware Technology Vice President Johny Srouji, who said Intel's still employees will help the company "accelerate development. of future products. "

. (tagsToTranslate) Apple (t) acquires (t) business (t) Intel (t) millions

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