Apple Preemptively Obtained Intel's 5G Smartphone Modem Expertise Before Settling Disputes with Qualcomm
Apple snatched Intel's prominent 5G modem developer, Umashankar Thyagarajan, in February, just a few weeks before it struck a truce with rival chipmaker Qualcomm in April, as reported by The Telegraph. Thyagarajan's move was not under wraps, as he's publicly listed as an "Architect" at Apple on his LinkedIn profile.
Apple, enmeshed in a bitter dispute with Qualcomm over patent royalties and antitrust concerns, had relied heavily on Intel as its exclusive supplier for the iPhone XS, XS Max, and XR. Thyagarajan, a key player in Intel's iPhone projects, left for Apple shortly before the tech giant resolved its issues with Qualcomm, resulting in a payment from Apple to Qualcomm, a six-year licensing deal, and a supply agreement for chips. This left Intel's 5G project without a major client, leading the company to abandon its 5G mobile ambitions entirely, as noted in The Telegraph's report.
Intel's internal emails suggest that Thyagarajan played a crucial role in the Intel chip used in last year's iPhones and was the project engineer for the 5G chip, known as XMM 8160. Thyagarajan's departure was seen as a setback for Intel, requiring the company to reshuffle the 5G project.
Rumors have circulated that Apple plans to acquire the entire modem chip business from Intel. The Wall Street Journal reported that Intel was considering selling off parts of its modem chip business to Apple or another acquirer, but talks cooled following the Apple-Qualcomm settlement. Some potential buyers besides Apple include Broadcom, ON Semiconductor Inc., Samsung, or Chinese company Unisoc Communications Inc.
Fast Company reported, before the settlement, that an anonymous source said Apple has a team of between 1000 and 1200 engineers working on the modem chips for future iPhones in San Diego, lured from both Intel and Qualcomm. While Apple may design future iPhone modem chips at this facility, TSMC or Samsung is likely to fabricate them for several years.
As Apple continues to build its own 5G modem technology, it aims to reduce its dependence on external suppliers like Qualcomm. The tech giant bought Intel's unsuccessful 5G modem business in 2019 but initially struggled with developing its in-house solution. Although the first generation is expected to debut in 2025, it may not outperform Qualcomm's existing modems. However, Apple is focused on enhancing its capabilities and gaining a technological edge over its competitors in the long term.
Thyagarajan's departure from Intel to join Apple's tech team potentially signaled a shift in future 5G modem suppliers for Apple, as reported by Fast Company. This move, coupled with the rumors of Apple acquiring Intel's modem chip business, could indicate that tech giant Qualcomm may face less demand for its licensing and supply agreements in the future. With Apple's focus on developing its own 5G modem technology, companies like Broadcom and Unisoc Communications Inc. might look to capitalize on Intel's vacated 5G mobile ambitions.
