The decision to quit the 5G modems business seems to be part of strategic move for Intel away from consumer sector, such as PCs, to focus on data center and networking business. The company said it will continue to invest in producing chips for 5G networking infrastructure.
The company also said it would continue to meet its commitments to supply its 4G smartphone modem product line but does not expect to launch 5G modems for smartphone, including those originally planned for launches in 2020.
"We are very excited about the opportunity in 5G and the 'cloudification' of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns," said Intel CEO Bob Swan, in a statement. "5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world."
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