Intel Announces to Quit its 5G Modem Business

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Intel will now focus its 5G efforts on the network infrastructure business and will honour the prevailing contracts for 4G chips

Intel, a leading global semiconductor manufacturing company, announced that it is quitting the 5G smartphone modem business.

The move came after Apple announced that it had settled its wide-ranging lawsuits with Qualcomm over the patent issues. The iPhone maker has entered into a multiyear chipset supply deal with the chip giant.

Earlier, Intel claimed that it would bring a 5G modem in 2020. However, it no longer expects to introduce 5G smartphone modems at all.

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Bob Swan, CEO, Intel, said in a statement, “We are very excited about the opportunity in 5G and the ‘cloudification’ of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns.”

Shifting the focus

“5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realise the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world,” he added.

However, the company will now focus its 5G efforts on the network infrastructure business and will honour the prevailing contracts for 4G chips. It is reassessing the opportunities for 4G and 5G modems in personal computers (PCs), Internet of Things (IoT) devices and other data-centric devices.

Last year, Intel became the sole supplier for 4G wireless chips to the Apple when iPhone makers lawsuit with Qualcomm heated up. In addition, Intel was working to create 5G chips for Apple to be used in future models of the iPhone.

However, according to reports, Intel was missing the target for wireless chips that were supposed to go into the iPhone model to be launched in 2020.

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