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Apple’s acquisition of Intel’s smartphone modem business is all about control

The iPhone manufacturer is buying the ability to make its own modem chips.

Apple’s acquisition of Intel’s smartphone modem business is all about control
Justin Sullivan/Getty Images

Apple is spending $1 billion to buy the majority of Intel’s wireless modem business, which comes with technology patents and 2,200 employees.

The move is part of Apple’s long-term plan to bring as much of its supply chain in-house as possible.

Apple isn’t the only technology firm that wants to control its silicon supply. Amazon Web Services, Google and Tesla are all building chips they need for their businesses. That allows them to customize, reduce costs and, crucially, maintain control over the supply of these increasingly vital components.

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