Apple is in talks to buy a key part of Intel’s smartphone modem business, four people briefed on the discussions told The Information. The acquisition of the German operations could boost the iPhone maker’s plans to internally develop a modem for its devices, the report said.
The activities targeted by Apple date back to when Infineon developed the modem business in Germany. Intel acquired the modem activities in 2011 from Infineon to help grow its own smartphone business.
Apple used Infineon modems when it first launched the iPhone until the acquisition by Intel in 2011. It relied again on Intel in 2016-18 during its licensing dispute with Qualcomm. More recently, Intel announced plans to exit the smartphone business, after Apple struck a new licensing agreement with Qualcomm.
The iPhone maker is seeking to develop its own modem in order to reduce its reliance on external suppliers such as Qualcomm. Acquiring the Intel activities could also help speed up its development of a 5G iPhone.
Intel told CNET it has seen "significant interest" in its 5G modem business, but did not confirm which companies have been in contact. The company said it hired outside advisors to help assess strategic options for the smartphone business.
