Intel wants to earn a lot of money from emerging 5G technology

Intel wants to earn a lot of money from emerging 5G technology

Intel today announced new chips and collaborations. In doing so, it hopes to show investors that the many billions of dollars that the company has invested in R&D around 5G technology have actually turned out well.

That’s what news agency Reuters reports today after it attended an Intel press conference as part of the Mobile World Congress in Barcelona. Where Intel usually achieves large margins on processors made for computers and data centers, this is different in the fashion world. There the margins are very small and the competition is big.

Investing in network technology

Intel entered the wireless network market in the course of 2011. To this end, it took over the German fashion manufacturer Infineon that year. Despite all these years of being active in the fashion market, Intel has only one really big customer: Apple. That company only uses Intel modems, especially now that it is involved in a long-running legal battle with Qualcomm.

The hope of Intel is that with the arrival of 5G networks it can gain market share and new customers. According to Reuters, CEO Bob Swan told us that the intention is to sell 5G modems to manufacturers other than smartphones. These include, for example, connected vehicle manufacturers, as well as manufacturers who want to connect their industrial devices to the Internet.

Chasing Deals

What makes investors most nervous is that we have taken some time to catch up with the rest. According to investors, “Calling in means that you don’t make any money,” says Swan. But now we are at a level that we believe is equal to the rest of the industry, especially as we move towards 5G.”

And so Intel actively enters into new partnerships. The company has made a deal with Fibocom Wireless and Arcadyan Technology, who will place Intel modems in their modules and gateways. These enable 5G connections for industrial equipment. Intel is also introducing new programmable 5G chips that will compete with Xilinx. Finally, Ericsson and ZTE will use different Intel processors for their 5G base stations.

This news article was automatically translated from Dutch to give a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.