According to The Information, Apple is negotiating with Intel to consider acquiring Intel's German modem division. After the acquisition, Apple can develop its own modem chip faster.
Intel is preparing to spin off the modem business in part. It has been reported that Apple is interested in acquiring. In April, the Wall Street Journal reported that Apple and Intel had talks and tried to acquire some parts of the Intel modem chip business. It is clear that negotiations are continuing.
People familiar with the negotiations said that once Apple and Intel reached an agreement, they might include Intel patents and products. The final acquisition agreement is similar to Apple's acquisition of Dialog Semiconductor. Dialog Semiconductor is a UK company that specializes in designing electronic device energy management chips. Last year, Apple acquired Dialog Semiconductor for $600 million. The company's 300 employees were assigned to Apple, and its patents were successfully won by Apple.
Apple has been negotiating with Intel since last year, but The InformaTIon warned that negotiations may still be fruitless. According to The InformaTIon's estimates, once the acquisition is completed, Intel's German modem business unit will have hundreds of modem engineers transferred to Apple. In 2011, Intel acquired the chip manufacturer Infineon and then had a chip production base in Germany.
Apple hopes to develop its own modem chip and reduce its reliance on Qualcomm, but Apple technology will not be ready until a few years. The InformaTIon had previously reported that Apple told job-seekers during the interview that it expects its own modem chip to be ready by 2025, much later than the industry estimate of 2021.