Hours after Apple Inc. AAPL, -4.19% and Qualcomm Inc. QCOM, -2.85% settled their fight on Tuesday, Intel Corp. INTC, -2.26% announced that it will get out of the business for 5G modem chips, in which it was trying to compete with Qualcomm. Apple's partnership with Intel on modem chips -- Qualcomm's bread-and-butter product -- was a big part of the legal fight between Apple and Qualcomm. But Intel has had trouble getting up to speed in making the chips, and had said that they would not be available until 2020, which would have put iPhones behind other smartphones using Qualcomm's technology in the race to the faster wireless standard. In an announcement late Tuesday afternoon, Intel said that it would continue to make 4G wireless modems and 5G infrastructure, "but does not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020." "We are very excited about the opportunity in 5G and the 'cloudification' of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns," Intel Chief Executive Bob Swan said in the announcement. "5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property." Intel shares gained 1.4% in late trading, after closing with a 0.8% gain that was slashed after the Apple-Qualcomm news was released late in the trading session.