Qualcomm Plans to Buy Intel: Here’s What We Know So Far

Qualcomm, the San Diego-based chip giant, has turned to a rival Intel about the potential takeoverThe move comes as Intel, once the world’s most valuable chip company, faces significant challenges to its business, according to The Wall Street Journal.
Sources familiar with the matter told the Journal that Qualcomm made an offer in recent days. The New York Times confirmed the report, adding that the two companies are in talks, although no formal offer has been made.
Qualcomm CEO Cristiano Amon reportedly personally participated in the negotiations. Amon is said to be actively exploring different deal options for the company. Earlier this month, Reuters reported that Qualcomm was exploring the possibility of acquiring part of Intel’s design business, and that its PC design unit was particularly interested. Qualcomm executives were exploring Intel’s entire portfolio of businesses.

Intel shares at record low

Intel from Market value about $87 billion, has seen its shares fall about 60% this year. The company recently announced a quarterly loss of $1.6 billion and plans to lay off 15,000 workers.
If a deal goes through, it will face significant hurdles. Antitrust scrutiny is likely to be intense, given the size and strategic importance of both companies in the U.S. semiconductor industry. Some, however, may see this as an opportunity to strengthen the country’s competitive advantage in the chip field.
Qualcomm, valued at about $185 billion, is known for its dominance in mobile chip technology. Intel, on the other hand, has struggled to capitalize on the smartphone revolution and the recent boom in artificial intelligence fries.
The Wall Street Journal reported that to facilitate the transaction, Qualcomm may consider selling some assets or parts of Intel’s business to other buyers.
Both companies declined to comment on the matter when approached by various media.
Intel last week spun off its foundry business as an independent subsidiary, which struck a deal with Amazon for AI chips. Intel is selling its stake in Altera as part of the restructuring. The company also said it would halt construction of its chip factory project in Europe for two years.