New Delhi [India], September 21 (ANI): Qualcomm, the San Diego-based chipmaker, has reportedly approached its rival ‘Intel’ about a potential acquisition, New York Times reported on Friday.
As per the report, although no formal offer has been made, discussions have taken place in recent days, highlighting the possibility of a landmark deal between two of the largest chipmakers in the world.
The report stated that the talks are confidential, and the likelihood of a deal remains uncertain due to regulatory challenges and the complexity of Intel’s operations.
“Qualcomm has not yet made an official offer for Intel, one of the people said, and the obstacles to a deal remain steep. Any deal would likely draw significant regulatory scrutiny, given the mammoth size and national security importance of both chip companies” reported New York Times.
Intel, once a dominant force in the semiconductor industry, has faced significant setbacks in recent years. A combination of management issues and missed technological transitions, including its failure to capitalize on the rise of mobile chips and artificial intelligence (AI), has left the Silicon Valley giant trailing behind competitors like Nvidia and Taiwan Semiconductor Manufacturing Company.
As per the report, Intel’s manufacturing capabilities, once considered the most advanced, have also lost ground to rivals. In August, Intel reported a USD 1.6 billion quarterly loss and announced plans to cut 15,000 jobs. The company is also pausing new plant setups in Germany and Poland, despite being the largest recipient of federal financing under the CHIPS Act.
Qualcomm, which specializes in cellular technology and provides chips for major smartphone makers like Apple and Samsung, has seen its stock rise by 55 per cent recently, giving it a market value of USD 169 billion. Intel, whose shares have fallen by nearly 40 per cent, is currently valued at USD 93 billion. A deal between the two would likely be costly and face intense regulatory scrutiny due to their size and strategic importance to U.S. national security.
Industry experts suggest that Qualcomm may be more interested in acquiring Intel’s chip design operations and expertise in PC software, rather than its foundry business, which manufactures chips. Given Qualcomm’s history of outsourcing production, it remains uncertain whether the company would want to take on Intel’s manufacturing arm.
The report added that both Qualcomm and Intel declined to comment on the reports. However, if Qualcomm’s bid progresses, it could signal a significant shift in the semiconductor landscape, with potential implications for the global chip market and U.S. technological competitiveness. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.