Avoiding Qualcomm dependency, Apple plans to acquire Intel’s 5G modem array
Acquiring a network modem production unit from Intel will help Apple become more proactive in the future, while limiting the impact from third parties. According to The Information, Apple is considering buying a part of 5G modem production for mobile from giant Intel to take the initiative in developing hardware components. Meanwhile, Intel is considering selling off its business in Germany, where it acquired and merged Infineon for $ 1.4 billion in 2011. At the end of April, the Wall Street Journal revealed that Apple is discussing the acquisition of part of Intel’s modem manufacturing business. However, the source said that the negotiations had to be halted as Apple reached an agreement with modem maker Qualcomm. Not long after the two giants Apple and Qualcomm reached a license agreement for six years and ended all litigation, Intel announced it withdrew from the 5G modem business race on smartphones. “When Apple and Qualcomm reached an agreement, we reevaluated our ability to grow in this area. Obviously there is no way to compete and earn profit,” said Bob Swan – Intel CEO – share with WSJ. Apple also expressed its ambition to become autonomous in the modem manufacturing process when continuously recruiting many chip design engineers from Qualcomm and Intel to work. In early February, the company established the modem design department run by Johny Srouji, vice president of hardware technology.