Qualcomm Is About To Acquire Intel? Here's What We Know

Last year, Intel’s PC client business saw an 8 per cent decline in revenue, dropping to $29.3 billion, reflecting overall weakness in the PC market.

US chipmaker Qualcomm has reportedly explored the possibility of acquiring segments of Intel design business to boost its product portfolio. According to a Reuters report, two sources familiar with the matter said that Qualcomm has examined acquiring several prices of Intel that are struggling to generate cash. Intel has been trying to shed some business units and sell off other assets to gain some capital and reduce continuous expenditure. One of the sources told Reuters that Qualcomm is quite interested in Intel's client PC design but it is looking at all of the company's design units. 

Another source familiar with the matter said that other segments of Intel, such as the server segment, might make less sense for Qualcomm to acquire. According to the report, an Intel spokesperson said that Qualcomm has not approached the company about any acquisition yet. The spokesperson added that Intel is “deeply committed to our PC business.”

Qualcomm has reportedly been working on plans to buy pieces of Intel for months now. Though the plans haven't been finalised yet which is why they might change at the last minute. 

What's Wrong With Intel?

Intel recently reported a horrible second quarter, including a 15 per cent staff reduction and a suspension of dividend payments. The company’s leadership is facing challenges in funding its manufacturing initiatives while maintaining cash flow. Last year, Intel’s PC client business saw an 8 per cent decline in revenue, dropping to $29.3 billion, reflecting overall weakness in the PC market.

Known for its iconic “Intel Inside” campaign, Intel's client group produces chips for laptops and desktops worldwide. Executives have indicated that the rise of AI-powered PCs could encourage consumers to upgrade their devices, potentially boosting sales.

Earlier this week, Intel unveiled its new PC chip, Lunar Lake, which executives claim delivers top-tier performance for AI-related tasks. Significant portions of these chips were produced by Taiwan Semiconductor Manufacturing Co., a departure from Intel’s usual in-house fabrication. Intel's board is expected to meet next week to discuss a proposal from CEO Pat Gelsinger and other top executives on ways to cut costs. As per Reuters, one option under consideration is the sale of its programmable chip unit, Altera.