Apple is in talks to buy Intelâ€™s smartphone chipset division, a move that would let the technology company control almost every aspect of the production of its iPhone.
The Wall Street Journal cited people familiar with the deal and said that the rough cost of the division is around $1 billion.
Apple has been slowly investing in its own mobile chips for performance reasons for a while now, so it makes sense to pick up a larger division to bolster its technology. It would also reduce Appleâ€™s dependence on Qualcomm.
Intel announced that it was abandoning its efforts to compete with the likes of Qualcomm, saying they could not keep up with the next generation of 5G networks.
Intel made the statement a day after Apple and Qualcomm agreed to â€˜dismiss all litigationâ€™ against each other over royalty payments.
The last-minute settlement was cut short just before a big courtroom battle was about to begin in California.
According to Apple, Qualcomm was taking advantage of its dominant position in the market to overcharge for its chips. Qualcomm denied allegations and accused Apple of abusing its position as a top smartphone manufacturer.