Apple plans to introduce its eagerly anticipated line of cellular modem chips next year, which will take the place of parts from long-time partner Qualcomm.
TakeAway Points:
- Next year, Apple is getting ready to release its eagerly anticipated line of cellular modem chips, which will take the place of parts from long-time partner Qualcomm.
- Intel announced the hiring of two new directors with substantial experience in chip production as the company intensifies its search for a successor to outgoing CEO Pat Gelsinger.
- The business announced that Steve Sanghi, the temporary CEO of Microchip, and Eric Meurice, the former CEO of ASML, will join Intel’s board with immediate effect.
Apple’s modems coming soon
Apple is preparing to launch its long-awaited series of cellular modem chips next year, which will replace components from longtime partner Qualcomm, Bloomberg News reported on Friday.
The iPhone maker is looking to ultimately overtake Qualcomm’s technology by 2027, the report said, citing people familiar with the matter.
Qualcomm, a leading designer of modem chips that connect phones to mobile data networks, has warned investors that Apple will eventually stop using its chips.
The chip designer has a deal to keep selling chips to Apple until at least 2026 and investors are keen to see if Qualcomm’s push into laptops and AI-powered data centers can accelerate quickly enough to compensate for potential drops in revenue from Apple.
Apple’s new component is set to feature in the iPhone SE, the company’s entry-level smartphone, which is scheduled for its first update since 2022 next year, the Bloomberg News report said, adding that it will be followed by further generations of increasingly advanced chips.
Qualcomm did not immediately respond to Reuters’ request for comment, while Apple declined to comment.
The iPhone maker has been working on its own modem technology and spent $1 billion to buy Intel’s modem unit in 2019.
In early 2019, Reuters reported that Apple moved its modem engineering efforts into the same chip design unit that makes the custom processors for its devices, signaling a doubling down on the pursuit of self-designed modem chip.
Last year, Apple signed a multi-billion-dollar deal with chipmaker Broadcom to develop 5G radio frequency components. Such a deal could hurt companies such as Skyworks Solutions and Qorvo, both of which are Apple suppliers.
Intel Hires Two New Directors While Searching For A CEO
Intel stated on Thursday that it has appointed two new directors with substantial experience in chip production as it intensifies its search for a successor to outgoing CEO Pat Gelsinger.
Former ASML CEO Eric Meurice and Microchip Technology interim CEO Steve Sanghi will join Intel’s board effective immediately, the company said. Their appointments mean that Intel’s board once again has directors with semiconductor experience, fixing a vacuum left by the departure of Cadence Design Systems Chairman Lip-Bu Tan in August.
Intel’s search for new directors predated Gelsinger’s firing, according to people familiar with the matter. The company’s board had been interviewing semiconductor executives for several weeks, said the people, who requested anonymity to discuss confidential information freely.
Meurice ran ASML, which manufactures some of the most advanced chipmaking machines, for eight years. ASML’s share price quintupled during his tenure, Intel said.
Sanghi rejoined Microchip as interim CEO in November, after serving as CEO from 1991 to 2016. Sanghi was previously an executive at Intel.
“Eric and Steve are highly respected leaders in the semiconductor industry whose deep technical expertise, executive experience and operational rigor make them great additions to the Intel board,” interim Executive Chairman Frank Yeary said.
Sanghi and Meurice join Intel’s board at a critical juncture. The company ousted Gelsinger over the weekend and has since been assembling a short list of replacements with the help of an executive search firm. Intel’s market cap sits firmly below $100 billion, and the company is still in the middle of an intense cost-cutting drive.
Intel CFO David Zinsner and product chief MJ Holthaus currently serve as interim co-CEOs.
