Apple has announced it is buying Intel's smartphone chip division for $1 billion (£803 million).
The deal could bolster Apple's efforts to build its own line of 5G chips, and reduce its dependence on rival chip maker Qualcomm.
Once the sale is completed later this year Apple will take on around 2,200 Intel employees and 17,000 wireless technology patents.
Barring any complications, the deal is expected to close sometime between October and December.
The agreement comes three months after Apple ended a long-running dispute with Qualcomm, to ensure it would have a pipeline of chips it needs for future iPhones to work on ultrafast 5G wireless networks.
The truce prompted Intel to abandon its attempts to make chips for 5G modems, effectively putting that part of the business up for grabs.
Apple is not expected to release an iPhone that works on 5G networks until September 2020 , putting it behind rivals such as Huawei and Samsung, which already make handsets that work with the faster wireless technology.
The iPhone maker's licensing deal with Qualcomm expires in April 2025.
