Qualcomm recently approached Intel with an offer to buy it, writes The Wall Street Journal, citing sources close to this issue. Earlier this month, it was reported that Qualcomm was considering buying part of Intel’s Core processor business. WSJ sources did not specify whether we are talking about buying the entire Intel company or just part of its business.
The sale of Intel, whose market value was estimated at about $87 billion as of Friday morning, would be a significant event for the semiconductor industry. According to the WSJ, Intel is currently experiencing one of the most significant crises in its fifty-year history.
The publication’s sources note that the issue of the deal is far from certain. Even if Intel were potentially willing to consider such a proposal, an agreement of this nature would definitely attract the attention of regulators. On the other hand, such a deal could be seen as an opportunity to strengthen the US competitive advantage in chip production in the global market. And in order for such a deal to be approved by regulators, Qualcomm could undertake to sell some assets or parts of Intel to other interested parties.
Intel, once the most valuable chip company, has seen its shares fall nearly 60% since the beginning of this year. At its peak, the company’s market capitalization was more than $290 billion. Intel’s shares rose 7% on Friday, while Qualcomm’s shares, now valued at about $185 billion, fell about 4% as The Wall Street Journal reported Friday.
The American company Qualcomm is one of the leading suppliers of chips for smartphones, as well as components necessary for the operation of cellular base stations. In addition, it is one of the most important suppliers of components for Apple’s iPhone, as well as for a number of other devices from other manufacturers.