Intel Corp has announced that it sold its smartphone modem chip business to Apple Inc."a multi-billion dollar loss," the U.S. chipmaker stated that the availability of Qualcomm Inc. forced it out of the market, due to its patent licensing practices.
Intel which is considered as Qualcomm’s chief rival in modem chipshas now confirmed that it has sold the components to Apple for the iPhone. But Apple which had already signed a chip supply agreement with Qualcomm is now in a dilemma.
Intel was Qualcomm's chief rival in modem chips and sold the components to Apple for the iPhone. But Apple signed a chip supply agreement with Qualcomm after they settled a major legal battle in May. Hours later, Santa Clara, California-based Intel said it would sell its modem chip business."We invested billions, hired thousands, acquired two companies and built innovative world-class products that eventually made their way into Apple's industry-leading iPhones, including the most recently released iPhone 11," stated Steven R. Rodgers, Intel's general counsel.
The Pentagon and the Department of Energy said Qualcomm was a "trusted" supplier of 5G technology and would be "impossible to replace" in the short term if put out of business. It now becomes difficult for Intel to start to build a new chip from the scratch, but the firm is confident enough to build its new modem chip from January 2020.