Apple Continues Talks With Intel Over Modem Acquisition


This should come as no surprise, as Intel had announced in April "its intention to exit the 5G smartphone modem business" altogether.

Apple is reportedly looking into acquiring Intel's German smartphone modem business.

Without a new deal, LG will likely have to completely halt sales of its newly introduced 5G device, the LG V50 ThinQ 5G, which leverages Qualcomm's 5G modems. Such an arrangement would resemble the deal Apple reached with Dialog Semiconductor, a United Kingdom -based company that designs chips that handle power management chores in devices.

The ongoing dispute between Apple and Qualcomm was the reason why Apple resorted to Intel for its modem technology. "We have received significant interest in the business but have nothing more to say at this time". The company said it hired outside advisors to help assess strategic options for the smartphone business.

What's more, proprietary modem production could even become a revenue opportunity if companies choose to sell their own chips to other device makers. A few reliable sources had claimed in February this year that the iPhone maker made some internal shuffles which suggested that the company might be looking into the prospect of manufacturing its own in-house modems. That is why it is only about the acquisition of technology and patents. Apple will quite likely to use Qualcomm's 5G modems in the iPhones which will be coming next year. 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 iPhone maker has also poached Intel's 5G lead engineer. Apple didn't want to delay the launch of 5G iPhones any further.

It's worth noting that Apple has picked up several employees who used to be executives of Intel.

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. But Intel was not able meet design deadlines. Remember that Apple is now working on its own modem project, with plans to ditch third-party suppliers from 2022.