The American electronics giant Intel will give up the 5G chip market in smartphones, he announced Tuesday, hours after its competitor Qualcomm reached a reconciliation agreement with Apple.
Intel’s announcement concerns precisely the “modem” components, these chips which are used to connect mobile devices to telecommunications networks and which were at the center of the legal dispute between Qualcomm and Apple. Intel will at the same time study the “opportunities” concerning 4G and 5G modem chips in PCs, connected objects and other devices managing data and ” will continue to invest in its activities in the infrastructure of 5G networks ”, wrote the group in a statement.
“5G is still a strategic priority for Intel” But “in smartphones it has become evident that there is no clear path to profitability ”, according to boss Bob Swan, quoted in the press release. Intel ” will ensure its customers’ orders for its 4G modems but does not plan to launch 5G modems for smartphones, including those scheduled for 2020 ”, also wrote Intel.
5G is the new ultra-fast mobile internet currently being deployed. It requires both new terminals equipped with 5G chips and specific network infrastructures. In conflict with Qualcomm for more than two years, Apple had turned to Intel. Qualcomm and Apple ended their legal battle on Tuesday by sealing a multi-year component supply agreement.