Apple paid $1 billion of the Intel’s smartphone modem business

Although Apple can develop its own processor chip for mobile devices, and its performance is the best in the world, its baseband chips still need to rely on giants such as Qualcomm or Intel. Before Qualcomm and Apple reconciled, intel has been the sole supplier of 4g baseband chips for Apple phones and tablets for the past year or two. However, with the backwardness of Intel in the 5G baseband chip, Apple’s self-developed baseband chip capability is weak, Apple has to reconcile with Qualcomm, and then intel announced the abandonment of 5g baseband chip research and development to develop 5g baseband chips.

Now Apple and Intel announced that they have reached an agreement on Apple’s acquisition of Intel’s 5G baseband division. Apple will acquire Intel’s smartphone modem business for $1 billion. Most of the employees and intellectual property and equipment will be integrated into Apple. Around 2,200 Intel employees will join Apple. The acquisition agreement is expected to be completed in the fourth quarter of 2019.

Via: theverge