Apple splashes out $1bn on Intel’s chip business
Apple has snapped up the majority of Intel’s smartphone chip business for $1bn (£800m) as it looks to secure its own supply of the vital iPhone part.
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Around 2,200 Intel workers will move to Apple, who will also acquire intellectual property, equipment and leases relating to modems, the tiny pieces of technology that let smartphones connect to mobile networks.
The deal will mean Apple holds over 17,000 patents for wireless technologies ranging from the “architecture” of chips to their operation.
Intel, which is based in Santa Clara, California, will keep making chips for PCs, self-driving vehicles and next-generation devices such as smart speakers.
“Apple is excited to have so many excellent engineers join our growing cellular technologies group,” said Johny Srouji, Apple’s senior vice president of hardware technologies.
He said the acquisition will speed up the development of its future products.
Apple, which has headquarters in Cupertino, California, has always bought its modem chips from outside suppliers.
It was recently involved in a spat with US chipmaker Qualcomm over the latter’s patent licensing practices, making it turn solely to Intel for the part.
Apple has long wanted to make the technology which is vital to its products. Rivals Huawei and Samsung can supply their own modem chips.
Intel chief executive Bob Swan said: “This agreement enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created.”
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“We have long respected Apple and we’re confident they provide the right environment for this talented team and these important assets.”