According to The Wall Street Journal, Apple is in talks to acquire Intel’s modem division. This is a deal that will be around $ 1 billion and could be officialized next week.
This news comes after it is known that Intel would close down its modem development division. A decision that was a direct consequence of the agreement reached between Apple and Qualcomm.
After the deal between Apple and Qualcomm, Intel came to the conclusion that it would make no sense to continue in this market. Apple being its largest modem client, Intel couldn’t see a future without the support of Cupertino’s company.
Apple seems to be the best-positioned buyer for Intel’s modem division
After Intel has left this market, Intel looks for a buyer for its modem division. Apple is best positioned to complete this business.
With the $ 1 billion advanced, Apple is set to acquire all patents and employees in Intel’s division. In this way, the company led by Tim Cook will have all Intel know-how in the manufacture of modems.
Apple and Intel have been working together for several years
The track record between these two companies puts Apple at the forefront of concluding such a deal. Note that since 2018, Intel has been Apple’s only provider of modems. A decision motivated by the then existing friction between Apple and Qualcomm.
We also have to mention that it was Intel who was developing 5G chips for Apple. Such a partnership broke after it was concluded that the first would not be able to meet the timing imposed by Apple.
By acquiring this division, Apple will have all the tools needed to become even more independent of other technology companies. The Cupertino company already manufactures its own processors and, if this business is successful, it will have the tools to develop its modems as well.