San Francisco, Sept 20 (Reuters) – Qualcomm has recently approached Intel to discuss a potential acquisition of the embattled chipmaker, according to a source familiar with the matter. This potential transformative deal, spearheaded by Qualcomm CEO Cristiano Amon, is still in its early stages and faces significant challenges. Although Qualcomm has yet to make a formal offer, Amon has been actively exploring options, particularly eyeing portions of Intel’s design business, including its PC design unit.
Earlier reports revealed Qualcomm’s interest in Intel’s broader portfolio, but talks remain confidential, with no official response from either company. Intel’s shares rose 3.3%, while Qualcomm’s stock fell 2.9% following news of the discussions.
Intel, once the world’s leading chipmaker, has struggled in recent years, losing nearly 60% of its market value since the start of 2024. Any potential deal would likely face antitrust scrutiny in the U.S., China, and Europe, possibly requiring Qualcomm to divest parts of Intel to secure regulatory approval.
This proposed acquisition would be the largest in tech since Broadcom’s failed $142 billion bid for Qualcomm in 2018. However, how Qualcomm, with a market value of $188 billion and $13 billion in cash, would finance the deal for Intel, valued at $122 billion, remains unclear. Qualcomm also lacks experience operating chip manufacturing facilities, unlike Intel, which has invested heavily in fabrication processes over the decades.
Intel, facing significant setbacks in recent years, has lost its edge in chipmaking to Taiwan’s TSMC and has been unable to capitalize on the AI chip boom led by competitors Nvidia and AMD. In response, Intel is focusing on AI processors and establishing a chip foundry business to turn its fortunes around. CEO Pat Gelsinger has announced plans to restructure the company, including pausing factory construction in Europe and cutting real estate costs.
The Wall Street Journal first reported Qualcomm’s talks with Intel.
