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Apple to Buy Intel’s Modem Chip Business for Smartphone

Tiffany Parker




Intel Corp is all suited to explore its strategic options for the modem chip business. There is a possible selling option to Apple or some other acquirer, shining in the horizon. Wall Street Journal reported the news on Friday, introducing people with the matter. Last week, Intel had decided to leave 5G modem chip business. The decision was made hours later from Apple’s settlement of a longstanding legal conflict with Qualcomm Inc. Qualcomm was a key supplier of modem chips for iPhone.

Last summer, Apple had talked with Intel and continued their discussion for months. Apple halted the conversations recently during the settlement process with Qualcomm as reported by WSJ.

However, Intel has received interest from various parties. The chipmaker has also hired the Goldman Sachs Group Inc for managing the process that is on its early development stage.

Intel, Apple, and Goldman Sachs – all three companies have declined the request of Reuters for any comment.

5G is network technology could be 100x faster than the current 4G networks. The new wave is coming soon this year in the US, South Korea, China, and some other countries. But the probability is high that until 2020, it won’t be widespread.

Before Intel cast their decision of leaving 5G modem business, only five companies who had revealed their plans to make 5G modem chips: Intel, Qualcomm, Samsung Electronics Co Ltd., Huawei Technologies Co Ltd, and MediaTek Inc. Huawei and Samsung make chips for their mobile phones only.

Some of the rival of Apple in the market of the smartphone – noticeably Samsung has planned to release its 5G devices during this year. It will put some pressure on Apple to live up to the upcoming new features. Many carriers have invested actively to build the 5G networks will likely to put their marketing efforts for 5G phones.

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A highly ambitious and performance driven system engineer, Tiffany Parker is from ASIC design and verification background. She is skilled in building test plans and creating environments for testing the functionality of blocks. When not working you will find him cooking his favorite food in the kitchen as he loves to serve as a chef for his family.

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