From the joint press release:
Intel and Apple have signed an agreement for Apple to acquire the majority of Intel’s smartphone modem business. Approximately 2,200 Intel employees will join Apple, along with intellectual property, equipment and leases. The transaction, valued at $1 billion, is expected to close in the fourth quarter of 2019, subject to regulatory approvals and other customary conditions, including works council and other relevant consultations in certain jurisdictions.
It’s been an open secret that Johny Srouji’s team at Apple has been working on modems for the iPhone, iPad, Apple Watch, and future devices that need smaller and more efficient cellular connections. I’m sure the acquisition of Intel’s hardware will help somewhat, but this is decidedly an intellectual property and talent acquisition for the value of one Instagram.