Qualcomm eyes parts of Intel’s ailing chip business – Computerworld

Intel this week launched its Lunar Lake chip, designed to power AI applications, as part of an effort to regain a competitive edge. But Intel has outsourced much of its chip production to TSMC, a shift from its historical reliance on in-house production.

Qualcomm’s Expansion Strategy

With a potential acquisition, Qualcomm could significantly expand its presence in the PC silicon market, which is becoming increasingly tied to AI-based computing. Gogia adds that such a deal “would enable Qualcomm to carve out a niche for supporting devices that enable AI tasks to be performed without an internet connection.” It could further strengthen Qualcomm’s relationship with Microsoft, especially as both companies continue to explore opportunities in AI PCs.

Qualcomm may also be interested in Intel’s server and HPC segments, said Neil Shah, research vice president at Counterpoint Research. “That’s a key market that Qualcomm doesn’t play in yet, but where Intel is competing with NVIDIA and AMD,” he said, adding that Intel’s Altera (FPGA) and Movidius (Visual Processing Units) will help fill gaps in Qualcomm’s portfolio.