The deal is expected to close in the fourth quarter of 2019. Around 2,200 Intel employees are expected to join Apple.
Apple will hold over 17,000 wireless technology patents when current, and future acquired licenses are combined with Apples existing portfolio. These patents range from modem operation, protocols for cellular standards and modem architecture.
Plans for the future
While Intel is handing over the majority of its smartphone modem business, it is not entirely leaving the market. It retains its ability to develop modems for non-smartphone applications including PCs and autonomous vehicles.
With this new agreement, Apple can focus on the development of the 5G network, using its own modems.
“This agreement enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created,” said Intel CEO Bob Swan
“We have long respected Apple, and we’re confident they provide the right environment for this talented team and these important assets moving forward. We’re looking forward to putting our full effort into 5G where it most closely aligns with the needs of our global customer base.”
Apple’s senior vice president of hardware technologies, Johny Srouji added “We’ve worked with Intel for many years and know this team shares Apple’s passion for designing technologies that deliver the world’s best experiences for our users.
"Apple is excited to have so many excellent engineers join our growing cellular technologies group, and know they’ll thrive in Apple’s creative and dynamic environment."