Intel could find one of the sources of cash they are so eagerly looking for in Qualcomm. The iconic brand of processors for desktop PCs, laptops, and servers is going through difficult times. The recent fiasco with the 13th and 14th Gen Core processors has worsened the situation. However, Qualcomm could be interested in acquiring Intel’s chip design business.
Qualcomm is one of the big players in the smartphone segment. Every year, the community and industry as a whole place the highest value on Snapdragon processors. Most mobile flagships turn to Qualcomm for renown and reliability. However, MediaTek has been rapidly expanding over the years, establishing itself as a formidable competitor. The situation forced Qualcomm to make its products even more competitive.
Qualcomm reportedly considering acquiring Intel’s chip design department
Qualcomm is considering acquiring Intel’s chip design department as one of its next moves to strengthen its business. According to Reuters, the latter’s PC design business is of “significant interest” to Qualcomm. However, the latter is reportedly considering acquiring all of Intel’s design units. The dedicated server section of Intel would not make much sense for Qualcomm, according to the report. After all, Qualcomm is not present in that segment.
A potential deal between the two companies is still a long way off, however. The source says Qualcomm has not yet approached Intel to begin negotiations. Even so, Qualcomm executives believe that the acquisition of Intel’s chips segment could be a key move for the future. In fact, the company has been studying the operation for months. Reuters does not rule out future changes, as some sources have suggested. While the interest exists, there is still no firm decision on the matter.
Intel’s current situation is delicate
Meanwhile, an Intel spokesperson said that the company is “deeply committed to our PC business,” in response to the rumors. In any case, the last year has been especially disastrous for Intel. The controversy over the early degradation of 13th and 14th Gen Core chips has generated distrust among its regular customers. Since January, the company’s shares have fallen by more than 59% at the time of writing this article.
In early August, Intel confirmed plans to cut 15% of its workforce, which represents around 15,000 jobs. The company is also reportedly looking to sell off some sections and assets to get ahead. So, this could be the ideal time for Qualcomm if interest in Intel’s chip design business is strong.
