Apple to buy Intel unit for $1 billion, to get 2,200 new employees

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 is valued at $1 billion, Intel and Apple said in joint announcement. Intel sought to shed the unit because Chief Executive Officer Bob Swan decided it was costing the chipmaker too much money to support just one customer, which is Apple. The deal will give Apple 2,200 new employees and now a total holding of 17,000 wireless patents, the companies said.

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.