Update: An Intel spokesperson has denied CTech’s report, reaching out to SiliconANGLE and other publications with a statement saying “Intel’s 5G customer engagements and roadmap have not changed for 2018 through 2020. We remain committed to our 5G plans and projects.”

A new report claims that Intel Corp. has halted development on a planned high-speed modem chip after Apple Inc. opted against using the product in its 2020 device lineup.

The news appeared late Wednesday in the Israeli technology journal CTech, which cited Intel officials and leaked internal communications. The development comes two months after sources told Bloomberg that Apple is looking to stop using the chip giant’s processors in Macs as soon as 2020 and replace them with its own silicon.

The iPhone maker might be taking a different strategy over on the modem front. A research memo published by Northland Securities Inc. last month posited that Apple may replace Intel’s chips with hardware from Taiwanese rival MediaTek Inc. rather than make its own. Either way, it’s disappointing news for the chip giant.

The CTech report cited unnamed Intel executives as saying that the company reassigned the team that was working on the planned modem to other projects. The chip, which is said to have been referred to internally as Sunny Peak, was reportedly intended to provide integrated 5G, Wi-Fi and Bluetooth capabilities.

The internal communications obtained by the publication also sheds some light on exactly why Intel decided to suspend development. Apple would have reportedly been the “key mobile customer” and “main volume driver” for the modem, according to the documents, which likely means that it stopped being worthwhile to pursue the project. With that said, Intel is apparently not giving up altogether.

CTech’s sources said that the company is now looking to build an enhanced version of Sunny Peak in a bid to get the chip into Apple’s 2022 product lineup. Securing a deal with the iPhone maker would strengthen Intel’s market position amid the shift to 5G, a set of networking technologies currently being implemented by major carriers. It’s estimated that 5G networks will provide internet speeds of up to multiple gigabits per second.

Intel is working aggressively to secure a headstart in this nascent market. In February, the company announced partnerships with Microsoft Corp., Dell Technologies Inc., HP Inc. and Lenovo Group Ltd. to begin producing 5G-enabled laptops. 

Photo: Apple