Qualcomm has reportedly approached Intel to discuss a potential acquisition, according to sources familiar with the situation. This move, initiated by Qualcomm CEO Cristiano Amon, marks an effort to explore a deal with the troubled chipmaker. The talks are still in early stages, and no formal offer has been made, as confirmed by multiple sources who requested anonymity due to the confidential nature of the discussions.
Qualcomm’s interest in Intel comes after earlier reports suggested the company was evaluating acquiring parts of Intel’s business, specifically its PC design unit. However, Qualcomm executives are said to be reviewing Intel’s entire business portfolio.
Intel has faced significant challenges in recent years, losing nearly 60% of its market value since the beginning of the year. Once a dominant player in the chip industry, Intel has struggled with maintaining its manufacturing edge, particularly in the AI-driven chip market where rivals like Nvidia and AMD have surged ahead. Intel has been attempting to regain ground by focusing on AI processors and expanding its contract manufacturing business, known as a foundry. Recently, Intel’s CEO, Pat Gelsinger, unveiled restructuring plans that include pausing factory construction in Europe and cutting real estate holdings.
The potential acquisition of Intel by Qualcomm could face significant regulatory scrutiny from authorities in the United States, China, and Europe, and Qualcomm may need to divest parts of Intel to gain approval. Financing the acquisition could also be a challenge, given Intel’s valuation of $122 billion, compared to Qualcomm’s $188 billion market value. Qualcomm has $13 billion in cash reserves, but its inexperience with operating chip fabrication facilities could further complicate the deal.
Intel and Qualcomm have both declined to comment on the ongoing talks. Intel’s stock closed up 3.3% following the news, while Qualcomm shares fell by 2.9%.
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