Intel looking for buyers for its smartphone-modem business

The business is losing 1 billion every year.

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Intel might be looking for firms to acquire its smartphone-modem business, since it's now officially out of the 5G chipset race, reports The Wall Street Journal. In fact, Apple was also seen as the potential buyer, but that deal didn't come to fruition as Apple and Qualcomm reached a settlement in a patent infringement dispute.

Intel looking for buyers for its smartphone-modem business

 

After the legal dispute got over, Apple and Qualcomm signed a multi-year deal for the chipsets, which ruled out Intel from the scenario. Now, it seems Intel wants to shut its chip-making operations, according to WSJ.

Apple is still seen as a possible buyer, though a few other companies have shown interest and Intel is working with Goldman Sachs to facilitate negotiations. The report also suggests that the deal will likely rack in billions of dollars for Intel.

Qualcomm was Apple's only supplier before the companies got involved in legal battles in 2017, accusing each other of patent infringement and contract violations. During this time, Intel can in to rescue Apple. Intel also denied rumors that Apple didn't show confidence in them to produce 5G modems for upcoming iPhones.

"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," Intel CEO Bob Swan said on April 16th.

According to the report, Intel is losing around 1 billion because of its modem business and will sell off the business including staff, patents, and designs of the modems.

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