According to two sources, the mobile chipmaker is eyeing various parts of Intel, floundering and eager to offload business units and other assets.
One source revealed that Qualcomm executives have particularly been interested in Intel’s client PC design business. However, considering all of Intel’s design units, they are casting a wide net. Another source, familiar with Qualcomm's operations, noted that acquiring Intel's server segment would be less sensible.
Despite all this speculation, Qualcomm has not yet approached Intel about a potential acquisition and has declined to comment on its plans. An Intel spokesperson, clinging to optimism, stated, "Intel is deeply committed to our PC business." Qualcomm, predictably, had no comment.
Qualcomm, valued at $184 billion and known for its smartphone chips, has plotted this potential acquisition for months. However, the sources caution that Qualcomm’s interests and plans are still in flux and could change.
The sources, who spoke on condition of anonymity, revealed that Intel is in dire straits. The company reported a disastrous second quarter, which included a 15 per cent staff reduction and a halt on dividend payments. Executives are scrambling to fund the company’s manufacturing plans and generate cash.
Intel’s PC client business revenue plummeted eight per cent to $29.3 billion last year, reflecting the overall slump in the PC market. Executives are banking on the advent of AI PCs to spur consumers into upgrading their machines and boosting sales.
Qualcomm, meanwhile, generated $35.82 billion in revenue last fiscal year. Earlier this week, Intel launched a new PC chip, Lunar Lake, which executives claim offers superior performance for AI applications. TSMC fabricated significant portions of these chips, a task Intel typically would have performed independently.
Next week, Intel's board will convene to consider a proposal from CEO Pat Gelsinger and other executives to streamline operations and save cash. According to Reuters, options include selling Altera's programmable chip unit.