Intel to Stop Making Modem Chips for 5G Smartphones
17 April 2019 - 6:01PM
Dow Jones News
By WSJ City
Intel dropped plans to make modem chips for 5G smartphones, it
said on Tuesday, hours after its chief rival in that market,
Qualcomm resolved a years-long legal dispute with Apple.
KEY FACTS
--- Intel's decision removes a major rival to Qualcomm for a
critical component in next-generation mobile phones.
--- It follows a settlement between Qualcomm and Apple, Intel's
biggest customer for those chips.
--- That settlement includes a multiyear deal for Qualcomm to
supply Apple a major reversal after the iPhone maker shifted to
Intel as its sole supplier.
Why This Matters
Intel's withdrawal leaves only a handful of competitors to
Qualcomm for 5G modems, which are small chips that manage
connection and the transfer of data between smartphones and cell
towers.
Intel could sell the business, although it isn't clear who would
buy it, said Srini Pajjuri, an analyst at Macquarie Research.
Without a customer like Apple in place and with regulatory scrutiny
of any transaction, the proposition may not look attractive. Intel
declined to comment on whether its announcement was related to news
of the Apple-Qualcomm deal.
A fuller story is available on WSJ.com
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(END) Dow Jones Newswires
April 17, 2019 03:46 ET (07:46 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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