Apple acquires Intel smartphone modem business

Apple officially announced on July 26 that it will take over most of Intel’s smartphone cellular communication modem business. As a result, more than 17,000 wireless technology patents and design facilities, and 2,200 Intel employees will join Apple. The acquisition price is $1 billion (1,180 billion KRW). Following regulatory review, the acquisition is expected to be completed by the fourth quarter.

The reason why most of the communication modem business is said here is the result of a policy to reduce the business in the form of specializing in fields such as the Internet of Things, which is expected to grow further, by handing over the smartphone field that cannot be opposed to Qualcomm to Apple.

Although Apple and Qualcomm had a long conflict, a reconciliation between the two sides was established as Qualcomm almost monopolized the market in the field of communication modems for 5G smartphones. It then announced its withdrawal from the communication modem market for smartphones. In other words, the reconciliation with Qualcomm solved the problem of supplying communication modems to Apple. Here, it seems that the purpose of acquiring the Intel communication modem business is to fundamentally solve the supply problem by internalizing this technology in the mid to long term.

Apple has been active in internalizing the design of core components so far. For example, the iPhone SoC was originally designed by Samsung Electronics with functions added to it, but in 2008 it acquired PA Semiconductor, which has processor design technology, and now makes it itself as an ARM-based design. Of course, the Intel logo will not be engraved on the main chip of the iPhone through this acquisition. From Apple’s point of view, it can be said that it is a block of key components that are important to secure design independence. Related information can be found here .