Author: Tronserve admin
Tuesday 27th July 2021 01:14 AM
Apple In Talks To Buy Intel's Mobile Chip Unit
Apple is in advanced talks to buy Intel's smartphone modem chip business for at least $1 billion, in line with a report by The Wall Street Journal.
Intel introduced in April that it would withdraw from 5G phone modems, and Apple apparently wants to take in the company's talent and intellectual property to develop such chips on its own.
Apple is still buying Intel's chips for iPhones since 2016, looking to limit its dependence on fellow U.S. supplier Qualcomm, with which it had a disagreement over royalties. But Intel suffered to find other major customers, as it principally focuses on chips for computers and data centers.
"For Apple this would be a clear 'doubling down' on 5G, which remains at the centerpiece of the company's smartphone future, with these chip assets giving Apple further control over its supply chain and core chip design," said Dan Ives, managing director at Wedbush Securities. Intel's determination to quit the money-losing business came hours after Apple and Qualcomm decided the royalty dispute. Qualcomm conformed to supply Apple with 5G modem chips for iPhones to be sold in 2020. Right at this moment, Apple will seek to catch up with Chinese and South Korean rivals' 5G phones by sourcing from Qualcomm.
But buying the operations from Intel would allow Apple to keep its options open and fashion its own chips in the future. The WSJ's report on Monday said the Apple-Intel talks could reach a finish over the coming week. Intel declined Nikkei's request for comments, while Apple didn't quickly respond.