Mobile chipmaker Qualcomm is exploring the possibility of acquiring parts of Intel’s chip design business, including its PC division. Intel, in turn, is looking for ways to raise funds and cut costs amid serious financial difficulties.
Image Source: Intel
According to Reuters, Qualcomm is particularly interested in Intel’s division that develops chips for personal computers, desktop and mobile Core. However, it is possible that the company’s attention may be focused on other divisions of Intel. At the same time, sources familiar with Qualcomm’s activities noted that the acquisition of some parts of Intel’s business, for example, the server segment, would be less feasible for the company.
Despite Qualcomm’s interest, the company has not yet approached Intel with a formal purchase offer. And an Intel spokesman said only that “we are deeply committed to our PC business.” Qualcomm also declined to comment. Sources emphasize that Qualcomm’s interest in buying parts of Intel’s business is not yet a final decision and may change.
Let us remind you that Intel faced serious financial problems in the second quarter of this year. The company has reduced staff by 15%, suspended dividend payments and is looking for ways to optimize costs, including financing its own production plans. Revenue from sales of personal computer chips fell 8% to $29.3 billion last year amid a general decline in the PC market. Intel’s board of directors will also next week consider proposals from CEO Pat Gelsinger to cut operating costs. Among the possible options is the sale of Altera’s programmable chip division. There have also recently been rumors that Intel may sell its chip production.
As for Qualcomm, the company, valued at $184 billion and known for its chips for smartphones (including for Apple), sees the purchase of parts of Intel’s business as an opportunity to expand its presence in the market, especially since the company received $35.82 this year billion in revenue. Intel, in turn, recently introduced new chips for Lunar Lake laptops, which, according to company executives, provide high performance for applications based on artificial intelligence. Manufacturing of Lunar Lake chips was carried out partially at TSMC facilities, a departure from Intel’s traditional practice of making chips in-house.