Shulou(Shulou.com)11/24 Report--

CTOnews.com March 26 news, Intel in IDM 2.0 on the road to go further and further, has now begun to abandon this unrelated edge business, achieve vertical integration, strengthen profitability.

Intel sold its 4G and 5G smartphone/tablet modem business to Apple in 2019, but the company retains its key 4G and 5G patents (including at least part of its 2011 acquisition of Infineon Wireless Solutions), and it continues to offer 4G and 5G modem solutions to laptop customers.

Intel pulled out of the WWAN business this week and sold the rest of the business to MediaTek and Guanghetong, according to current sources. (CTOnews.com Note: Guanghetong is the first Internet of Things wireless module enterprise listed in A shares in China, providing one-stop wireless communication solutions for 5G, 4G, 3G, 2G, NB-IoT, LTE-M, intelligent, vehicle-level wireless communication modules and Internet of Things applications)

According to More Than Moore, the decision has been in the works for a long time, and while Intel will stop producing 4G and 5G modems, it will continue to offer laptop solutions based on its CPU, but with MediaTek modems, thereby providing connectivity solutions for all client devices.

Intel plans to transfer its 5G technology to Guanghetong and MediaTek, and they are currently pushing for the transfer of driver code and licensing agreements. It's worth noting that this doesn't affect Intel's other connectivity businesses, including Wi-Fi, Bluetooth, Ethernet, Thunderbolt, or Network + Edge.

It is worth mentioning that although Intel intends to completely withdraw from the 5G market by July, it will still retain a small team to assist MediaTek in solving hardware, software and customer problems. The technology transfer will be completed by May and is not expected to have any financial impact on Intel.

At that time, all OEM partners using Intel 5G solutions can continue to work with MediaTek to provide updates and upgrades to their existing products.

Eric McLaughlin, vice president of wireless solutions for Intel General Motors, said in a statement to More Than Moore: "As we continue to prioritize our investment in IDM 2.0 strategy, we have made the difficult decision to exit the WWAN client business for LTE and 5G. We are working with our partners and customers to achieve a seamless transition to support their ongoing business and ensure that our customers continue to use solutions in the connected PC space. "

For Intel, its 4G and 5G modem business may not be the most profitable business. Furthermore, as Dr. Ian Cutress points out, the total market for always-connected PCs (ACPCs) has not increased in recent years. While there may be an influx of competitors from Apple and Qualcomm, Intel may not be focused on competing with them given the limited profit margins in this space.

Relatively speaking, having a complete set of connectivity solutions means a lot to MediaTek, and MediaTek will now also get Intel's 4G/5G business unit.

More Than Moore quoted a MediaTek statement as saying: "MediaTek has a long history of providing wireless solutions globally and will continue to invest in its wireless modem portfolio, from smartphones to PCs and other devices. "

For 4G services, Intel will gradually end support for its 4G modem products. As mentioned above, GHTT is Intel's main partner in China, and the last shipment to GHTT is expected to be delivered by the end of 2025, depending on the order status, and Intel will not provide new research or technology in this market.

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