Earlier this month, multiple reports surfaced that Qualcomm is exploring the possibility of acquiring portions of Intel’s design business, especially its client PC design unit, to enhance its product portfolio.
However, a new report from The Wall Street Journal on Thursday, citing people familiar with the matter, claims that the chip giant Qualcomm is considering a “full takeover” of the U.S. semiconductor manufacturer Intel and has reportedly approached its competitor for the possibility of acquisition.
According to sources familiar with the matter, the WSJ report describes the deal as “far from certain.” However, Qualcomm has not yet made an official offer for Intel, The New York Times corroborated the WSJ report on Friday evening.
Even if Intel is receptive to an offer, a potential takeover between two of the largest chipmakers in the world would attract antitrust scrutiny, considering their massive size and national security importance.
The WSJ report further suggests that Qualcomm could intend to sell assets or portions of Intel to other buyers to secure a deal. Both Qualcomm and Intel have declined to comment on the reports.
For those unaware, Intel, once the most valuable company in the world, valued at $290 million, is now in deep financial trouble, with its current market value standing at roughly $90 million.
The semiconductor company also recorded a loss of over 240 billion yen in the second quarter of 2024, with its shares dropping by 57% this year.
In early August 2024, Intel’s leadership announced that it would lay off more than 15% of its workforce, roughly 15,000 employees, as part of a broader cost-reduction strategy that aims to reduce costs by $10 billion in 2025.
