Apple is buying Intel’s modem chip business
Chipmaker says it sold modem chip business at a “multi-billion dollar loss” after it was allegedly forced out of the market by Qualcomm.
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Intelhas revealed it sold itssmartphone modem chip business to Appleat a “multi-billion dollar loss” after it was allegedly forced out of the market by Qualcomm.
In a recentblog post, executive vice president and general counsel atIntel, Steven R. Rodgers explained that the chipmaker was forced out of the market due to Qualcomm’s patent licensing practices and he argued that the decision against the company should stand, saying:
“We invested billions, hired thousands, acquired two companies and built innovative world-class products that eventually made their way intoApple’s industry-leading iPhones, including the most recently released iPhone 11. But when all was said and done, Intel could not overcome the artificial and insurmountable barriers to fair competition created by Qualcomm’s scheme and was forced to exit the market this year.”
However, Qualcomm appealed the ruling and it won’t be enforced until after the appeal is concluded.
Intel vs Qualcomm
Back in May, US District Judge Lucy Koh in San Jose wrote a 233-page decision in which she said that Qualcomm’spatent licensing practices“strangled competition” in the modem chip market. Koh then ordered the company to renegotiate its licensing agreements to be more reasonable.
Qualcomm has denied the FTC’s accusations against it and other parts of the US government have even urged the appeals court to pause enforcement of the FTC ruling against the company.
However, replacing Qualcomm won’t be so easy as both the Pentagon and the Department of Energy said in July that Qualcomm was a “trusted” supplier of5Gtechnology and that the firm would be “impossible to replace” in the short term.
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Intel’s brief is filed with the 9th US Circuit Court of Appeals, where Qualcomm is currently trying to overturn an antitrust decision against it following a lawsuit by the US Federal Trade Commission.
ViaBusiness Insider
After working with the TechRadar Pro team for the last several years, Anthony is now the security and networking editor at Tom’s Guide where he covers everything from data breaches and ransomware gangs to the best way to cover your whole home or business with Wi-Fi. When not writing, you can find him tinkering with PCs and game consoles, managing cables and upgrading his smart home.
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