Apple has announced the acquisition of chip-maker Intel's smartphone modem business for $1 billion.
2,200 Intel employees will join Apple, along with intellectual
property, equipment and leases, the Cupertino-based iPhone maker said in
a statement late Thursday.
The transaction is expected to close in the fourth quarter of 2019.
agreement enables us to focus on developing technology for the 5G
network while retaining critical intellectual property and modem
technology that our team has created," said Intel CEO Bob Swan.
looking forward to putting our full effort into 5G where it most
closely aligns with the needs of our global customer base, including
network operators, telecommunications equipment manufacturers and cloud
service providers," he added.
Apple will hold over 17,000
wireless technology patents, ranging from protocols for cellular
standards to modem architecture and modem operation.
retain the ability to develop modems for non-smartphone applications,
such as PCs, internet-of-things devices and autonomous vehicles.
Srouji, Apple's senior vice president of Hardware Technologies said
that Apple is excited to have excellent engineers join its growing
cellular technologies group.
"They, together with our significant
acquisition of innovative IP, will help expedite our development on
future products and allow Apple to further differentiate moving
forward," he added.
Apple has been working on its own chips for
quite some time. Acquiring Intel's technology could help the iPhone
maker accelerate its plans.
Apple may have paid chip-maker
Qualcomm somewhere between $5 billion-$6 billion for an agreement to
dismiss all ongoing litigations, including those with Apple's contract
Intel had been working on a chipset for the iPhone maker, with the chip expected to be part of iPhones by 2020.