Qualcomm Inc. is exploring the potential acquisition of segments of Intel’s chip design business, sources with knowledge of the matter revealed. This strategic move aims to enhance Qualcomm’s product offerings and bolster its market position.
The discussions center around various segments of Intel’s business, particularly its client PC design division, which has attracted Qualcomm’s interest. This comes amid Intel’s ongoing efforts to streamline its operations by divesting certain business units and selling assets.
Sources familiar with the situation indicated that while Qualcomm is evaluating all of Intel’s design units, the server segment is considered less relevant to its strategic goals. However, no formal proposal has been made by Qualcomm to Intel at this time.
An Intel spokesperson confirmed the company’s commitment to its PC business but did not comment further on the potential acquisition discussions. Qualcomm also declined to provide a statement on the matter.
Qualcomm, valued at $184 billion and renowned for its mobile chips utilized in smartphones—including those supplied to Apple—has been deliberating over this acquisition for several months. The discussions are still preliminary, and the company’s plans could evolve.
Intel, facing financial difficulties, reported a challenging second quarter last month. The company announced a 15% workforce reduction and halted dividend payments as it seeks to fund its manufacturing initiatives and stabilize its cash flow. The client PC segment, historically a cornerstone of Intel’s business, saw an 8% decline in revenue to $29.3 billion last year amid broader market weaknesses.
Intel’s client group, once famous for its “Intel Inside” campaign, produces chips for laptops and desktops globally. Despite current challenges, Intel is banking on advancements in AI technology to drive future growth and consumer demand.
In a bid to revitalize its offerings, Intel recently introduced the Lunar Lake PC chip, which it claims delivers enhanced performance for AI applications. Notably, Taiwan Semiconductor Manufacturing Co. (TSMC) has played a key role in fabricating these new chips, a shift from Intel’s traditional in-house production.
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