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Apple Still Considering Acquiring Intel’s 5G Business For Building Its Own Modems: Reports


Apple Still Considering Acquiring Intel’s 5G Business For Building Its Own Modems: Reports
Apple has not given up on acquiring the Germany-based modem business of chip maker Intel and is still examining the possibilities, according to reports published recently in the media citing sources with knowledge of the matter.
Reports indicated that selling off pieces of its modem business has been reportedly considered by Intel. The heart of that business lies in Germany where Infineon was acquired and integrated by it in 2011. The engineers who were posted at the German modem facility had previous experience of working on chips which had become part of the iPhones about a decade ago.
This is however not the only occasion that reports of Apple’s interest in Intel's business have surfaced. In April, a report published in the Wall Street Journal claimed that Apple was seriously interested in acquiring Intel’s modem business.
"Significant interest" in its 5G modem business has been seen by it, said Intel to the media in a statement. But the company did not disclose any specific names of companies or partners.
The statement from Intel as quoted in CNET and AppleInsider read:
“We have hired outside advisors to help us assess strategic options for our wireless 5G phone business. We have created value both in our portfolio of wireless modem products and in our intellectual property.”
Intel later exited the 5G smartphone modem business with its CEO Bob Swan explaining that the decision had been taken because Apple and Qualcomm had brought an end to their longstanding legal fight and had struck a partnership with relation to the development of 5G modems for phones. It is expected that 5G enabled hones would be launched by Apple in 2020 which would have Qualcomm chips.
Recently, Apple was on a hiring spree at its San Diego office which is also the city from where Qualcomm conducts its US operations. Over the years, it has been noticed that Apple chooses to expand its hiring in such places where the company leadership feels it has a feasible opportunity to poach on the talent available with its competitors. For example, Apple may have recently made plans to add thousands of new jobs in Seattle.
There were reports in February of Apple conducting reshuffling of its staff internally which according to some analysts and industry experts signaled that the iPhone maker was considering the case of development of its own modems which could be designed and built without any outside help so that the company does not depend on partner companies for such supply when the need arises. However experts also believe that such capabilities can only be achieved by Apple after several years. And until such time, it would suit Apple’s modem intentions and aspirations well by it poaching and hiring engineers, patents, and products from Intel which could also expedite the company in attaining its goals for modem development.