Qualcomm, the mobile chip giant, is reportedly in talks to acquire Intel, the struggling chipmaker, in what could be a transformative deal for the technology industry.
The deal is still in the early stages and no formal offer has been made, but Qualcomm CEO Cristiano Amon is personally involved in the negotiations. The news comes after Qualcomm recently explored acquiring parts of Intel’s design business, particularly its PC design unit.
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A potential takeover presents numerous challenges, including antitrust scrutiny from regulators in the United States, China, and Europe. Qualcomm might have to divest parts of Intel to secure approval. The financial implications are also significant, as Intel’s market value currently stands at $122 billion, and Qualcomm has roughly $13 billion in cash.
Another hurdle is Intel’s vast chip fabrication infrastructure, which Qualcomm does not possess. Qualcomm currently outsources production to companies like TSMC and uses designs from Arm Holdings.
This move comes at a time when Intel is facing significant challenges, including losing its manufacturing edge to TSMC and struggling to compete in the AI chip market. A successful acquisition would offer Qualcomm a chance to expand into the PC and server chip market.