Qualcomm reportedly considering buying part of Intel's chip design division

by Kārlis Dambrāns

Reuters reported that Qualcomm, a major semiconductor manufacturer, is considering acquiring part of Intel's chip design division, which is suffering from a decline in performance. Qualcomm is looking at all of Intel's chip design divisions, but is particularly interested in the chip design division for client PCs .

Exclusive: Qualcomm explores acquiring pieces of Intel chip-design business | Reuters
https://www.reuters.com/technology/qualcomm-has-explored-acquiring-pieces-intel-chip-design-business-sources-say-2024-09-06/

Qualcomm reportedly explores buying portions of Intel's PC client business | Tom's Hardware
https://www.tomshardware.com/tech-industry/qualcomm-reportedly-explores-buying-portions-of-intels-pc-client-business

Qualcomm interested in buying parts of Intel business: report
https://qz.com/qualcomm-interested-buy-parts-intel-business-ai-chips-1851641782

Intel has been struggling with the rise of TSMC and AMD, and is trying to turn things around under CEO Patrick Gelsinger, who took office in 2021. However, the company's second quarter 2024 financial results showed a deficit of over 240 billion yen, and it announced plans to cut about 15,000 employees, equivalent to more than 15% of its total workforce, and has also canceled plans to develop a semiconductor manufacturing base in Germany .

Intel announces second quarter 2024 financial results, announces deficit of over 240 billion yen and cuts about 15,000 jobs - GIGAZINE

Some have suggested that Intel's only way to recover is to split off its foundry business, and Intel is reportedly considering options including selling the business.

Is Intel's only way to revive itself the foundry business? - GIGAZINE

Reuters reported on September 7, 2024 local time, citing two sources familiar with the matter, that 'Qualcomm is considering acquiring part of Intel's chip design business to strengthen its product portfolio.'

While Qualcomm is keeping an eye on all of Intel's chip design divisions, one of the sources said Intel's client PC chip design division is of major interest to Qualcomm executives, as Qualcomm has a large market share in smartphone chips and other products, so acquiring a server chip design division, which is a different field, doesn't make much sense.

According to sources, Qualcomm has been considering a plan to acquire part of Intel for several months, but the plan has not been finalized at the time of writing, so the plan may change in the future.

In response to a Reuters inquiry, an Intel spokesman said that so far it had not received any approaches from Qualcomm, saying, 'Intel is deeply committed to the PC business.' Qualcomm declined to comment.