The app economy” may dominate discussions of “tech,” but semiconductors are still what drive the digital economy. But there is a worrisome concentration of advanced chipmaking in Taiwan.

There are risks – manmade and natural — in having such a high concentration of chipmaking in one place

Apple and Intel have signed an agreement for Apple to acquire the majority of Intel’s smartphone modem business. Approximately 2,200 Intel employees had join Apple, along with intellectual property, equipment and leases. The transaction, valued at $1 billion, is expected to close in the fourth quarter of 2019, subject to regulatory approvals and other customary conditions, including works council and other relevant consultations in certain jurisdictions.

Combining the acquired patents for current and future wireless technology with Apple’s existing portfolio, Apple had over 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation. Intel will retain the ability to develop modems for non-smartphone applications, such as PCs, internet-of-things devices and autonomous vehicles.

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about the pending acquisition of the majority of Intel’s smartphone modem business, including statements regarding the benefits and the timing of the transaction.

These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the outcome of regulatory reviews of the transaction, the outcome of works council consultations and other relevant consultations in certain jurisdictions, the ability of the parties to complete the transaction in the time expected or at all, litigation or regulatory matters affecting the closing of the transaction. 

Intel, a leader in the semiconductor industry, is shaping the data-centric future with computing and communications technology that is the foundation of the world’s innovations. The company’s engineering expertise is helping address the world’s greatest challenges as well as helping secure, power and connect billions of devices and the infrastructure of the smart, connected world – from the cloud to the network to the edge and everything in between.

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