Apple Plans to Buy Intel's German Modem Unit

Intel's defunct 5G modem biz might end up in the hands of Apple

Shortly after Apple and Qualcomm settled their disputes, Intel announced that it was exiting the 5G smartphone modem business.

According to recent information, Apple is negotiating with Intel acquire its German modem division.

But later Intel left the 5G smartphone modem business and CEO Bob Swan told The Wall Street Journal that Apple and Qualcomm have ended legal terms and lawsuits and both the companies have come together to work of 5G modems for phones. Qualcomm is expected to once again supply modems for Apple iPhones.

Back in 2011, Intel took over Infineon for $1.4 billion - a chip maker that served as a base for its modem team.

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This is not the first we've heard of Apple's interest in Intel's business.

We have hired outside advisors to help us assess strategic options for our wireless 5G phone business. Apple hopes that the acquisition will help it to develop its own modem chip faster. That was around the same time the company announced a settlement with Qualcomm Technologies Inc. over its patent licensing business and said it would resume using Qualcomm's components in its smartphones. Last year, Apple acquired Dialog Semiconductor for $600 million.

However, the latest report is the first time the German arm of the business has been referenced, suggesting that Apple is in negotiations with the company and is ironing out the final points. The business unit has a long, successful history of working with Apple, as it supplied Apple with baseband chips for iPhones manufactured from 2007 to 2010. The double switching of suppliers has ultimately slowed down the development of a 5G-compatible iPhone for Apple, as the new device appears to have been pushed beyond 2020. Apple didn't want to delay the launch of 5G iPhones any further. The company's 300 employees and patents were assigned to Apple. To Apple's distress, Intel's plan regarding their 5G modems went to drain, and Apple had to look for another chipmaker for their 5G modem.

Apple is rumored to be developing its own smartphone modems to reduce its reliance on third-party vendors like Qualcomm and Intel.

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