In March 2023 Intel confirmed it was exiting its LTE and 5G WWAN (wireless wide area network) business for PCs, the cellular modem modules that let laptops connect to mobile networks without Wi-Fi. Intel said the move was part of its IDM 2.0 strategy, so it could put more investment into its own manufacturing. It also said it was working with partners so customers could still get cellular-connected PCs, and that its Wi-Fi, Bluetooth, Ethernet and Thunderbolt businesses were not affected.
Key takeaways
- News of the exit was reported on 22 to 23 March 2023 after Intel gave a statement to the trade press.
- Intel framed the decision as part of IDM 2.0, its plan to grow its own manufacturing and foundry business.
- Its 5G PC modem work was based on a partnership with MediaTek, with module maker Fibocom; reports said the 5G technology would pass to MediaTek and the LTE work to Fibocom.
- Intel said the decision would not affect its other connectivity businesses.
What Intel announced
Intel is exiting the LTE and 5G WWAN business as part of its IDM 2.0 strategy, but has downplayed the impact of this move, stating that it is working with partners to ensure customers can still access related products. Intel clarified that the decision will not affect its other businesses, naming Wi-Fi, Bluetooth, Ethernet, Thunderbolt and its network and edge business, and that it is working to ensure a seamless transition for its partners and customers. The company plans to prioritise investments related to increasing its own manufacturing capabilities.
Analysts noted that MediaTek, which supplies the 5G modem chips, will continue efforts in the market. Press reports at the time said the transfer of Intel's 5G technology to MediaTek was expected to finish by the end of May 2023, with Intel leaving 5G PC modems by July 2023, and LTE products winding down with last shipments by around the end of 2025, depending on partner orders. These dates came from press and analyst reports rather than an Intel press release, so treat them as reported.
Background: how Intel got here
| Year | Event |
|---|---|
| 2019 | Intel left the 5G smartphone modem business, and Apple agreed to buy the majority of Intel's smartphone modem business for about 1 billion US dollars |
| 2019 to 2021 | Intel partnered with MediaTek and Fibocom to keep offering 5G modules for PCs, using MediaTek modem chips; the first 5G products for laptops reached the market in 2021 |
| March 2021 | Intel announced its IDM 2.0 strategy, centred on its own fabs and a new foundry business |
| March 2023 | Intel confirmed its exit from LTE and 5G WWAN for PCs |
After the smartphone exit, the PC modem business was a partnership arrangement rather than an Intel-designed modem. That made it a small part of Intel's revenue, and an easier business to hand over when the company was cutting costs and concentrating capital on manufacturing.
Why it matters
- For PC makers: cellular laptops did not disappear. PC makers could keep buying modules from Fibocom and other module makers, with modem chips from MediaTek, Qualcomm and others.
- For MediaTek and Fibocom: they gained more direct relationships with PC makers that had previously bought through Intel's programme.
- For Intel: the exit fitted a wider pattern in 2022 and 2023 of closing or selling non-core businesses to fund its manufacturing plans.
FAQ
What is a WWAN module in a PC?
A small plug-in card, usually M.2, containing a cellular modem, so a laptop can use 4G or 5G mobile data through a SIM or eSIM.
Did Intel stop making Wi-Fi chips?
No. Intel said its Wi-Fi and Bluetooth businesses were not affected by the decision.
Does Intel still make cellular modems for phones?
No. It left the smartphone modem business in 2019, when most of it was sold to Apple.
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