Qualcomm Explores Intel Takeover Amid Struggles in the Chip Industry

[Yash Phulfagar]

In a significant development, Qualcomm has recently approached Intel about a potential acquisition. Qualcomm CEO Cristiano Amon is personally leading the discussions, with the negotiations currently in the early stages. Intel, once a leader in the semiconductor industry, has faced major challenges this year, with its stock dropping nearly 60%. Qualcomm’s interest is particularly focused on Intel’s design and PC units, though the talks are still at a preliminary stage.

 

Intel has been working to revive its business by focusing on AI processors and expanding its chip contract manufacturing capabilities, known as its foundry business. Despite these efforts, the company has been losing ground to competitors like TSMC and Nvidia, especially in the booming AI market. Qualcomm, which doesn’t manufacture its own chips, may face challenges managing Intel’s complex fabrication operations if a deal moves forward.

 

A potential acquisition could draw attention from global regulators, particularly in the US, China, and Europe, and Qualcomm may need to divest parts of Intel’s business to gain approval. Following the news, Intel’s stock saw a 3.3% uptick, while Qualcomm’s shares dipped by 2.9%.

 

If successful, this would be one of the largest acquisitions in tech history, rivaling previous big deals such as Broadcom's attempted buyout of Qualcomm and Nvidia's bid to acquire Arm. However, the financial details and potential hurdles for Qualcomm’s takeover of Intel remain uncertain. So far, Qualcomm has not made an official offer, and talks are ongoing.