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Intel will stop creating 5G modems for smartphones following the supply agreement between Qualcomm and Apple



Intel will stop creating 5G modems for smartphones following the supply agreement between Qualcomm and Apple


The technology Intel has announced that it is ruling out manufacturing modem chips for 5G smartphones, an announcement that would give way to its main rival, the also American Qualcomm, to once again become the great supplier of this technology for Apple.

Intel’s decision gives Qualcomm wings on a key component for the next generation of mobile phones that is expected to dominate the market for years to come. Intel’s announcement comes after the agreement reached between Qualcomm and Apple to put an end to all the legal disputes related to patents that they kept open in various parts of the world.

The agreement between Apple and Qualcomm includes a multi-year pact for Qualcomm to be Apple’s supplier of these chips, which is a serious setback for Intel, which three years ago became the supplier of the apple company to the detriment of Qualcomm.

Intel’s exit from the smartphone modem chip business leaves only a few competitors for Qualcomm in this segment, among which would be the Taiwanese MediaTek or the Chinese Huawei. Thus, the American company will continue to provide 4G connectivity solutions, but will not continue production of the 5G modems in which it is currently working, including those models that planned to be launched in 2020 on new iPhone phones, as previously collected by sources from the production chain. .

Instead, the American company has bet on its business of 4G and 5G modems for computers, Internet of Things (IoT) devices and other equipment, and will also maintain its investments in 5G network infrastructure. Intel’s decision came just a few hours after the announcement of the agreement between Apple and Qualcomm by which the semiconductor company will provide its chips to Apple for six years from this month of April, extendable to two more years.

The two companies have also ended several years of complaints about mutual patent infringement, through a settlement that includes Apple’s payment to Qualcomm in royalties.