Apple has entered into a deal to acquire a majority of Intel’s modem business, TechCrunch has learned. The deal, valued at around $1 billion includes Intel IP, equipment, leases and employees, with Apple bringing over 2,200 new roles and bringing its portfolio up 17,000 wireless technology patents.
The deal confirms earlier rumors that Apple would acquire the business in order to permanently uncouple itself from Qualcomm, the source of much contention for both parties over the last several years.
“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 SVP Johny Srouji said in a release tied to the news. “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. They, together with our significant acquisition of innovative IP, will help expedite our development on future products and allow Apple to further differentiate moving forward.”
The move is also inline with Apple’s recent push to build all of its device components in house. Tim CEO signaled the way forward for the company a decade ago, when he told the press, “We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution.”
Apple expects the deal to close in Q4, after being subjected to the standard regulatory scrutiny.