Shares of Intel are up more than 1% in premarket trading following reports that Apple is in talks to buy its smartphone-modem chip business.
The Wall Street Journal first reported news of the potential deal, citing people familiar with the matter.
The deal would give Apple a greater role in developing key parts of its smartphones at a time when phone sales are falling.
The smartphone-modem chips allow phones to connect to wireless data networks. Apple would also acquire Intel’s work developing chips for 5G, the next generation of ultra-high speed wireless, according to the report.
Intel said in April it would no longer make 5G modems for smartphones, citing “no clear path to profitability and positive returns” in the business.