Moscow, February 25 — “News. The economy” the Company assures investors that the billions spent on developments in the field of 5G will pay off.

Photo: SASCHA STEINBACH/ EPA
Intel is trying to convince investors that billions of dollars aimed at research and development in 5G, will pay off.

The second-largest chip maker by revenue, Intel entered into the wireless data business through the acquisition of German modem manufacturer Infineon in 2011. The only major customer modems is Apple Inc whose iPhone is equipped with modem Intel chips.

But this business, in which Intel competes with giants like Qualcomm Inc and MediaTek Inc, has a lower margin than chip maker used to on their flagship processors intended for personal computers and data centers.

However, Intel Executive Director Bob Swan said that the prospects of 5G networks, which are expected to unfold this year and next year and will be much faster than the existing 4G will go beyond sales of modems handset manufacturers.

Intel plans to sell the modems to manufacturers for use in connected vehicles, and industrial equipment manufacturers. In addition, Intel plans to use its other products, including processors and so-called programmable chips in different network devices.

“Where investors are most concerned about, we have some time to catch up. We are now at the stage where we believe that we have products that are just as good as all in the industry, when we move to 5G,” said Swan at a press conference in Palo Alto.

Intel has announced that it has entered into an agreement with the manufacturers of network devices Fibocom Wireless Inc., Arcadyan Technology Corp. and other companies about enabling modem Intel chips in so-called modules and gateways, which will help industrial equipment to connect to the 5G networks. The company also introduced a new programmable chips that will compete with Xilinx Inc., which in the last quarter of increased revenue from transactions 5G.

In addition, Intel plans to sell versions of their flagship processors for use in base stations 5G, which help transmit signals to mobile phones back to the core network, and said reached agreements with Ericsson and ZTE Corp to use Intel processors in their network devices 5G.

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