In a surprising development, Qualcomm is reportedly exploring a full acquisition of Intel, according to a Wall Street Journal report. While discussions are ongoing, a deal remains uncertain.
Intel, currently valued at $87 billion, has faced significant challenges, including a 60% drop in share prices this year. The company lost Apple as a customer in 2020 when Apple shifted to its own ARM-based chips. Additionally, Intel’s latest processors have not met the expectations of PC manufacturers.
Earlier in 2023, Intel attempted to acquire Tower Semiconductor to better compete with TSMC but failed to secure regulatory approval. A potential deal with Qualcomm may also face similar obstacles.
One way for Qualcomm to proceed could involve divesting certain Intel assets to other buyers. In 2019, Apple purchased Intel’s modem division for $1 billion.
While Intel remains a leader in the PC market, interest in ARM architecture is growing due to its energy efficiency. Recently, Microsoft showcased Surface laptops with Qualcomm ARM chips, which outperformed Apple’s base M3 chip in some benchmarks.
The outcome of Qualcomm’s talks with Intel could lead to significant changes in the tech industry.
Leave a Comment