Apple seized Intel's foremost 5G smartphone modem innovator prior to settling disputes with Qualcomm.
In a potential shakeup for the tech industry, Intel's 5G modem business is at the centre of ongoing negotiations with Apple, with the possibility of a sale on the horizon.
According to reports, apart from Apple, potential buyers for Intel's modem chip business include Broadcom, ON Semiconductor Inc., Samsung, and Chinese company Unisoc Communications Inc. The value of Intel's modem chip business decreases with each second that passes without a sale, as highlighted by industry analysts.
The negotiations between Apple and Intel have been ongoing, but have not yet been finalized. The talks cooled around the time of the Apple-Qualcomm settlement in April, but recent developments suggest a renewed interest.
Apple's decision to pursue Intel's modem business comes after the hiring of Umashankar Thyagarajan, Intel's lead developer for 5G phone modems, in February. Thyagarajan, who was the project engineer on developing Intel's 5G chip, known as XMM 8160, now lists an "Architecture" job at Apple on his LinkedIn page.
Thyagarajan's arrival at Apple coincided with Intel's announcement that it was abandoning its 5G mobile ambitions entirely, just hours after he joined the tech giant. This move was significant, as Apple had been using Intel as its exclusive supplier for the iPhone XS, XS Max, and XR.
The settlement between Apple and Qualcomm in April seems to have led Apple to return to Qualcomm, although it had previously employed some of Intel's talent. Fast Company's source believed that Apple's best choice was to return to Qualcomm, though Apple brought on board some of Intel's talent before doing so.
The future of iPhone modem chips, designed by Apple employees, might be fabricated by TSMC or Samsung, but this is likely years away. The Telegraph has also noted rumours that Apple is planning to buy up the rest of Intel's chip modem business entirely.
The negotiations between Apple and Intel are a significant development in the tech industry, with potential implications for both companies and their competitors. As the situation unfolds, it will be interesting to see how these developments shape the future of 5G technology in the smartphone market.
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