Intel to Exit 5G Smartphone Modem Business, Focus 5G Efforts on Network Infrastructure and Other Data-Centric Opportunities

SANTA CLARA, Calif.–(BUSINESS WIRE)–Intel Corporation today announced its intention to exit the 5G
smartphone modem business and complete an assessment of the
opportunities for 4G and 5G modems in PCs, internet of things devices
and other data-centric devices. Intel will also continue to invest in
its 5G network infrastructure business.

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.

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.”

Intel expects to provide additional details in its upcoming
first-quarter 2019 earnings release and conference call, scheduled for
April 25.

About Intel

Intel (NASDAQ: INTC), a leader in the semiconductor industry, is shaping
the data-centric future with computing and communications technology
that is the foundation of the world’s innovations. The company’s
engineering expertise is helping address the world’s greatest challenges
as well as helping secure, power and connect billions of devices and the
infrastructure of the smart, connected world – from the cloud to the
network to the edge and everything in between. Find more information
about Intel at newsroom.intel.com
and intel.com.

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Contacts

William Moss
Media Relations
650-521-1754
william.moss@intel.com

Mark Henninger
Investor Relations
503-550-5162
mark.h.henninger@intel.com