Published: Wed, July 24, 2019
Tech | By Anita Cain

Apple in 'advanced talks' to buy Intel's defunct 5G modem biz

Apple in 'advanced talks' to buy Intel's defunct 5G modem biz

In an update on the matter published today, the Wall Street Journal claimed on behalf of unnamed sources "familiar with the matter" that Apple has been talking with Intel about buying the modem chip business.

San Francisco: Apple which is looking to buy Intel's modem division since a year ago is reportedly in "advanced stage" to strike a deal for $1 billion.

The deal "could be reached in the next week" and end up being worth $1 billion or more, comprising both patents and staff members, according to the report. It was trying to help get Intel mobile 5G ready for the first 5G iPhone but it seems like time was against them.

Representatives for Apple and Intel declined to comment.

Apple's efforts to buy Intel's chip business is an extension of Apple's broader strategy of developing as many components as possible in-house.

The next month, a federal judge ruled that Qualcomm had engaged in nearly 20 years of anticompetitive conduct to maintain its dominant position in the wireless chip business-conduct that hurt the prospects of would-be competitors like Intel.

The two companies struck a six-year licence agreement, effective from 1 April, which includes a two-year option for extension and a multi-year chip supply deal. This would give Apple a shortcut to creating its own 5G chips for future iPhones. Intel then bought Infineon in 2011, but those chips weren't used again until the iPhone 7 and iPhone 7 Plus in 2016 after a dispute over Qualcomm's licensing fees. CEO Bob Swan confirmed to the Journal that the decision was due to Apple and Qualcomm.

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