Apple negotiating acquisition of Intel’s 5G modem business

Intel’s earlier announcement of its exit from the 5G modem chip business, following settling a long standing dispute with Qualcomm, presents an opportunity for Apple. A potential deal with Intel is likely to squeeze Qualcomm since it is a key supplier of modem chips for Apple’s iPhones.

Apple Inc aims to acquire Intel Corp’s smartphone-modem chip business, said a report from the Wall Street Journal citing sources familiar with the matter at hand.

The potential deal, valued at $1 billion, could be reached as early as next week, said sources.

The development comes in the wake of Intel announcing in April that it would exit the 5G modem chip business hours after it reached a long standing legal dispute with Qualcomm Inc, a key supplier of modem chips which are used in iPhones.

While Apple declined to comment, Intel did not respond to requests for comment.

With the news reaching the market, Intel’s shares rose by 1.5% to $52.10, while those of Apple rose marginally in extended trading.

Qualcomm’s shares were down by around 2%.

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