Apple to buy Intel cellular modem unit

Apple Inc. is buying Intel Corp.’s struggling cellular modem unit, bringing on key engineering talent and patents that will allow the technology giant to more quickly develop crucial components to connect its devices to the mobile internet.

The deal will give Apple 2,200 new employees and now a total holding of 17,000 wireless patents. Apple has been using Intel modems exclusively in iPhones since last year. But after having settled its long-standing royalties’ lawsuit with Qualcomm Inc. in April, it will go back to using that company’s 5G cellular modems for future versions of products like the iPhone.

Qualcomm was the first to offer such technology at a mass scale and was on track to have its second-generation chip in the market before Intel released its first. Eventually, Apple wants to shed all third-party partners and bring modem production in-house, a move that the deal with Intel should help expedite.

Apple has been working on its own modem technology for the past couple of years and has established development centers, including in San Diego, a hotbed for modem development and Qualcomm’s backyard, to support the effort. In recent months, Apple has been ramping up hiring from Intel and Qualcomm to work on 5G modems.