Qualcomm has shown interest in buying parts of Intel’s design business, particularly its unit that focuses on designing chips for personal computers (PCs).
Sources familiar with the situation revealed that Qualcomm, a major player in mobile chip manufacturing, is considering acquiring various segments of Intel’s design business. Intel, currently facing financial challenges, is exploring ways to streamline its operations, which might include selling off some of its assets.
Qualcomm is particularly interested in Intel’s client PC design business, which creates chips for laptops and desktops. However, the company is evaluating all of Intel’s design units. Intel’s server segment is less appealing to Qualcomm, according to a source familiar with the company’s strategy.
As of now, Qualcomm has not approached Intel directly about a potential acquisition. An Intel spokesperson stated that the company remains committed to its PC business. Both companies declined to comment further on the matter.
Qualcomm, valued at $184 billion and known for its smartphone chips, including those used by Apple, has been contemplating this acquisition for several months. However, these plans are still in the early stages and could change.
Intel, on the other hand, has been struggling financially, reporting a significant drop in revenue and cutting 15% of its workforce. The company is seeking ways to fund its manufacturing plans while managing its cash flow.
Intel’s PC client business, which generates chips for laptops and desktops, saw an 8% decline in revenue last year, amid a general downturn in the PC market. The company is hopeful that the rise of artificial intelligence (AI) will encourage consumers to upgrade their PCs, boosting sales.
Earlier this week, Intel introduced a new PC chip called Lunar Lake, designed to enhance AI performance. Unlike in the past, significant portions of these chips were manufactured by Taiwan Semiconductor Manufacturing Co. instead of Intel itself.
Next week, Intel’s board will meet to discuss a proposal from CEO Pat Gelsinger and other executives on how to reduce costs, which could include selling its programmable chip unit, Altera, according to a report from Reuters
