Apple May Be Set to Buy Intel’s Modem Division

According to a Wall Street Journal report, tech giant Apple is reportedly in advanced discussions to acquire Intel’s model division for at least $1 billion.

The WSJ said the deal, which would allow Apple to buy patents as well as staff, could be announced as early as next week.

Shares of Intel were gaining over 1% on the news in after-hours trading. Apple shares remained flat.

Shares of Intel’s rival Qualcomm were modestly lower on the news with a loss of about 2%. It was not too long ago that Apple and Qualcomm had settled a long legal dispute over parent licensing practices. The two companies had announced that Apple would buy modem tehcnology again from Qualcomm.

Apple’s latest generation of iPhones has LTE modem chips from Intel but Intel announced that it would no longer develop its next-generation 5G modem chip.

Intel and Apple have been in talks for roughly a year, according to WSJ. The talks had been stalled when Apple reached the settlement with Qualcomm.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.