Apple has announced that they will be acquiring the modem business of Intel for $1B. The deal is expected to be completed during Q4 2019 and will be reviewed with regulatory approval in mind.
In the transaction, Apple will be absorbing about 2,200 Intel employees and the business’ lease and equipment. The Cupertino-based company will also expand their patent portfolio in wireless technology to more than 17,000.
Intel is expected to retain its ability to development their modem for non-smartphone platforms, which includes autonomous vehicles, IoT devices and PCs. Just last week, the Wall Street Journal reported that Apple was interested in buying Intel’s modem business, an agreement that concluded today.
It’s believed that Apple is developing its own smartphone modems, and the acquisition will serve as a push towards that direction. Rumors say that Apple already has about one to two thousand employees working on chips for use on future devices, which doubles when the transaction goes through.