Qualcomm recently entered talks with Intel to explore a potential acquisition, reports Reuters cite sources.
The talks, which involve Qualcomm CEO Cristiano Amon, are still in their early stages and no formal offer has been made for the chipmaker.
Qualcomm’s interest in Intel comes at a time when Intel is facing challenges in the market, with the company’s shares having fallen nearly 60% of their value since the start of 2024.
San Diego-based Qualcomm, which has a market capitalization of $188 billion, is reportedly looking at Intel’s entire portfolio, including its PC design division.
According to a source familiar with the negotiations, Amon is personally involved in exploring various options for a deal.
Earlier this month, it was reported that Qualcomm had expressed interest in acquiring part of Intel’s design division.
However, the talks have not yet resulted in a formal offer and Intel declined to comment.
Qualcomm also did not respond to requests for comment.
A potential takeover by Qualcomm would likely face strict scrutiny from antitrust authorities in the US, China and Europe.
There is speculation that Qualcomm may have to divest parts of Intel to get regulatory approval.
If the bid goes through, it would be the biggest takeover attempt in the technology sector since Broadcom’s thwarted bid for Qualcomm in 2018.
The financing of the acquisition remains uncertain, as Qualcomm has about $13 billion in cash and it is unclear how the company will manage Intel’s contract manufacturing business, as Qualcomm has no history of operating chip factories.
Intel, on the other hand, is focusing on a turnaround strategy, with an emphasis on artificial intelligence processors and the creation of a foundry business.
In a separate development, Bloomberg reported that Apollo Global Management has offered to invest up to $5 billion in Intel, which could provide a boost to the chipmaker’s efforts to revive its business.
Intel is also taking strategic steps, such as pausing construction of factories in Poland and Germany, reducing real estate and striking a deal to produce a custom networking chip for Amazon’s AWS.
“Qualcomm approaches Intel to explore potential acquisition” was originally created and published by Verdict, a GlobalData brand.
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