Intel Sells Over 5,000 Patents to IPValue Management

In a recent development reported by various international media outlets, Intel has executed the sale of over 5,000 patents to the patent management firm IPValue Management. This extensive patent transaction with IPValue Management encompasses diverse technologies, including application processors, computing systems, storage, communication, packaging, semiconductor architecture, design, and manufacturing, spanning over two decades of research.

These patents have been transferred to a newly established entity within the IPValue Group, named Tahoe Research. Moving forward, IPValue intends to continue acquiring patent portfolios from prominent semiconductor companies globally.

This strategic move is not unprecedented for Intel, as demonstrated by its 2019 agreement to divest its smartphone modem business to Apple. The resolution of the legal dispute between Apple and Qualcomm resulted in a six-year global licensing agreement, enabling Apple to utilize Qualcomm chips instead of Intel's. This transaction, valued at approximately $1 billion, involved the transfer of over 2,000 Intel employees and various assets to Apple.

In 2020, Intel further streamlined its operations by selling its NAND flash memory and SSD business to South Korea's SK Hynix for $9 billion. However, the complete fulfillment of this transaction is anticipated by 2025, during which Intel will transfer specific intellectual property related to NAND flash wafer manufacturing and design.

This strategic realignment by Intel comes amidst internal restructuring and market deceleration, which led to a significant downturn in revenue during the previous quarter.