According to recent information, Apple is negotiating with Intel acquire its German modem division. Apple hopes that the acquisition will help it to develop its own modem chip faster. Intel is preparing to spin off the modem business. In April, Wall Street Journal reported that Apple and Intel had talks.
According to reports, once Apple and Intel reach 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 and patents were assigned to Apple.
Apple has been negotiating with Intel since last year, but The Information warns that negotiations may still be fruitless. According to The Information estimates, once the acquisition is complete, Intel’s German modem business unit will have hundreds of modem engineers transferred to Apple. In 2011, Intel acquired 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 previously reported that Apple told job-seekers during an interview that it expects its own modem chip to be ready by 2025, much later than the industry estimate of 2021. Apple is not in much of a hurry to develop its own chip since it was able to resolve its legal cases with Qualcomm.