Rumours Apple is in talks to acquire Intel’s ailing smartphone modem chip business resurfaced, with discussions over a $1 billion deal said to be at an advanced stage.
According The Wall Street Journal, a formal agreement could be reached as soon as next week. The lofty $1 billion sum covers the business itself, patents and staff.
For Apple the move marks an escalation of efforts to produce a greater number of components in-house, while Intel would dispose of a unit which has had its future hanging in the balance for some time.
In April, the chip company dropped plans to develop 5G smartphone modems after concluding it would be unable to make money from them.
Intel’s decision was made in the wake of Apple settling a long-running dispute and signing a six year supply deal with Qualcomm, effectively killing-off Intel’s prospects of becoming Apple’s primary supplier of the modem chips.
Prior to abandonment of the project, the lead developer behind Intel’s 5G modem business left to join Apple’s in-house architecture team.
Last month Intel said it was “assessing strategic options” for its wireless 5G business and had received a number of expressions of interest. At the time media named Apple as a leading contender.Subscribe to our daily newsletter Back