BUSINESS Apple pays $1 billion for Intel unit in push for chip independence

BUSINESS

Apple pays $1 billion for Intel unit in push for chip independence

CGTN

09:59, July 26, 2019

Apple agreed Thursday to pay 1 billion U.S. dollars to acquire the majority of Intel's smartphone modem business, a move giving the iPhone maker more control over its supply chain.

2e8d7bb586df4cf9a35fd344265cfaad.jpg

(File Photo: CGTN)

As part of the deal, some 2,200 Intel employees will join Apple, which will acquire intellectual property, equipment and leases.

Johny Srouji, Apple's senior vice president of hardware technologies, said the move "will help expedite our development on future products and allow Apple to further differentiate moving forward."

Intel chief executive Bob Swan said the deal "enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created."

Apple has been investing in its own mobile chips to ramp up performance and features in its devices and reduce its dependence on sector leader Qualcomm.

Intel earlier this year announced it was abandoning efforts to compete with modem chips for smartphones synced to new-generation "5G" networks.

Apple has accused Qualcomm, which holds the most patents for chips, of taking advantage of its dominant position to charge exorbitant amounts for its chips or access to its patents. But the two firms later agreed to settle their legal disputes.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue