According to a report from The Wall Street Journal, Qualcomm is reportedly exploring a potential acquisition of Intel. Qualcomm, which recently made its foray into PC processors, has approached Intel about a takeover, though the deal is described as “far from certain” and would likely face significant regulatory challenges.
Intel, once a dominant player in the semiconductor industry, has faced mounting financial difficulties and increasing competition. The company recently reported a $1.6 billion loss and plans to lay off over 10,000 employees. Intel’s market value has plummeted to $87 billion, with its shares down by 60% this year alone. This decline has been driven by rising competition, technological shifts, and the 2020 loss of one of its largest customers, Apple, which moved from Intel processors to its own ARM-based M-series chips.
Although Qualcomm is best known for manufacturing Snapdragon processors, which power a big chunk of the world’s Android smartphones, the chipmaker has been attempting to enter the PC market. Most recently, it introduced a couple of chips, the Snapdragon X Plus and Snapdragon X Elite, hailed for their AI capabilities and strong performance. An acquisition by Intel will grant Qualcomm access to former assets and technologies, possibly strengthening its hand in both PC and server markets.
While Qualcomm outsources chip manufacturing with TSMC and Samsung, Intel still operates its plants-a differentiator. However, Intel has been very late to the party as AI chip demand soars, while Nvidia leads the charge in the generative AI revolution.
At the moment, Intel and Qualcomm have not commented on the reported acquisition talks that some reports claimed.
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Source: Moneycontrol
News Desk
