As reported earlier, Apple was in advance talk with Intel to sign an agreement for the former to acquire the majority of Intel’s smartphone modem business.
In this deal, about 2,200 Intel employees will join Apple, along with intellectual property, equipment and leases, to make modems for Apple’s line of iPhones and iPads. Intel will, however, retain the ability to develop modems for non-smartphone applications, such as PCs, internet-of-things devices and autonomous vehicles.
This acquisition boosts Apple’s portfolio to over 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation.
The transaction is valued at $1 billion and is expected to wrapped up in the last quarter of 2019, subject to regulatory approvals and other requirements.