Last week Apple officially confirmed its desire to acquire the greater part of modem business to Intel. The amount of the transaction is approximately $ 1 billion. However, as it became known today, Intel will work on this sale not more than $ 500 million. But more importantly, the deal will allow chipmakers to significantly reduce losses.

In an interview with Yahoo! Finance Intel Executive Director Robert Swan noted that the availability of funds, the company plans to spend on accelerating the transition to 10-nm and 7-nm process technology. In addition, the deal with Apple has allowed the chip maker to get rid of the not too favorable business. According to the Executive Director of Intel, having only one big customer to the mobile modems, the company would be unable to earn enough on the sale of components to keep for the business.

Apple is also strongly interested in buying a modem of Intel’s business. Have at their disposal the asset, cupertinos no longer totally dependent on Qualcomm. That is mutual benefit and led to the conclusion of the agreement between the companies.

Recall that the deal between Apple and Intel should be completed in the fourth quarter of this year. Under the agreement, the cupertinos have at their disposal equipment that is of the order of 2 200 skilled employees, with about 17 000 different patents. While Intel retains all rights to the development and production of modems for computers and unmanned vehicles.

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