According to two individuals familiar with the matter, Qualcomm is looking into acquiring components of Intel’s design unit in order to broaden the company’s product portfolio.
The sources claim that the mobile chipmaker has contemplated purchasing several parts of Intel, which is having financial difficulties and is attempting to divest business units and other assets.
One of the people said that while Qualcomm officials are looking at all of the company’s design departments, they are particularly interested in Intel’s client PC design group.
It would make less sense, according to a second person with knowledge of Qualcomm’s operations, to acquire other Intel businesses, such as the server business.
A representative for Intel said that Qualcomm has not contacted the company about a potential purchase and has chosen not to comment on its future plans. The spokesman stated that Intel is “deeply committed to our PC business.”
Qualcomm declined to comment.
The $184 billion Qualcomm—a company best known for its semiconductors for smartphones and with Apple as a client—has been formulating plans to purchase Intel stock. The sources claim that Qualcomm’s intentions and level of interest are not finalized and could alter.
The two individuals chose not to reveal their identities since they were prohibited from speaking about the subject in public.
Last month, Intel revealed a poor second quarter that included a 15% employee cut and a suspension of dividend payments. Executives are struggling to find a way to keep supporting the business’s manufacturing goals while simultaneously producing cash.
With the PC industry declining overall, its income from PC clients decreased by 8% to $29.3 billion in the previous year.
The client division of Intel, formerly well-known for its “Intel Inside” advertising campaign, produces desktop and laptop CPUs that are utilized in gadgets worldwide. According to executives, the introduction of artificial intelligence-powered PCs would boost sales by incentivizing customers to upgrade.
In the most recent fiscal year, Qualcomm’s total revenue was $35.82 billion.
Lunar Lake is a new PC processor that Intel unveiled earlier this week. According to company officials, it offers better performance for AI applications. Prior to Taiwan Semiconductor Manufacturing Co.’s production, Intel developed a significant portion of the chips internally.
Intel CEO Pat Gelsinger and other executives have proposed that the company reduce its operations in an effort to save money. The board of Intel is scheduled to discuss this idea next week. Altera, its programmable chip division, may be sold, which is one possibility.
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
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