Qualcomm approached Intel for potential acquisition, focusing on PC design unit

From Investing.com: 2024-09-21 00:05:53

Qualcomm has approached Intel for a potential acquisition, signaling a transformational deal in the tech sector. CEO Cristiano Amon is personally driving the negotiations. Qualcomm is interested in Intel’s PC design unit and exploring various options. Intel’s shares rose 3.3%, while Qualcomm fell 2.9%.

A deal between Qualcomm and Intel would face antitrust scrutiny. Qualcomm, valued at $188 billion, would need to divest parts of Intel, valued at $122 billion, for regulatory approval. This would be the largest tech takeover since Broadcom’s $142 billion bid for Qualcomm in 2018, blocked by Trump.

Qualcomm has roughly $13 billion in cash for a potential bid. It is unclear how Qualcomm would handle Intel’s contract manufacturing business, as Qualcomm does not operate chip factories. Intel’s recent struggles include losing ground to TSMC and failing to produce desired chips for AI.

Intel is pivoting its business to focus on AI processors and chip contract manufacturing. The company plans to halt factory construction in Poland and Germany, reduce real estate holdings, and collaborate with Amazon on a custom networking chip. Discussions between Qualcomm and Intel were first reported by The Wall Street Journal.



Read more at Investing.com: Qualcomm approached Intel about a takeover in recent days, source says By Reuters