Apple will acquire “the majority” of Intel’s smartphone modem business for $1 billion, the two companies announced today. Around 2,200 Intel employees will join Apple, and Apple will acquire IP and equipment from Intel as well. The transaction is expected to close toward the end of the year. Intel won’t be getting out of the modem business entirely. It’ll still be able to develop modems for PCs, Internet of Things devices, autonomous vehicles, and seemingly anything that’s not a smartphone.
In the past, Apple has accused Qualcomm of charging “disproportionately high” fees in patent royalties, which it was accused of forcing companies to agree to if they want access to its hardware as part of a “no license — no chips” policy. Apple and Qualcomm reached a six-year patent licensing agreement in April, which Apple will presumably rely on as it develops modems of its own.