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Intel pulls the plug on manufacturing 5G chips

Intel will no longer join the competition in manufacturing 5G chips for smartphones.

Intel Corp has been supplying processors for computer system manufacturers. It also manufactures semiconductor chips. As 5G chips are booming in today’s generation, Intel is one of those companies who committed to creating one. Unfortunately, Intel announced on Tuesday that they exited on the 5G chip business.

The withdrawal comes after rival Qualcomm and Apple signed a 6-year licensing deal. Huawei CEO Ren Zhengfei also release a statement that they are open to selling 5G chips.

“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. “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.”

Though the company will no longer make 5G chips for smartphones, the company ensures its customer that they will continue to meet its current customer commitment. “The company will continue to meet current customer commitments for its existing 4G smartphone modem product line, but does not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020,” Intel said.

Intel’s decision to leave the 5G business will make Qualcomm the only official company to supply and manufacture 5G modems for smartphones. Intel is focusing on creating 4G and 5G chips for computers, internet of things and other data-centric services instead.

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