1 week Ago By Firstpost
Qualcomm is reportedly exploring the possibility of acquiring parts of Intel’s chip design business in an effort to strengthen its product offerings. According to sources familiar with the matter, the mobile chipmaker has been assessing various segments of Intel’s design business, including its client PC design division, which appears to be of particular interest to Qualcomm’s leadership. Intel, which has faced financial struggles recently, is reportedly looking to offload some of its business units in a bid to generate cash.
The company has been grappling with declining revenues and cost-cutting measures, which include staff reductions and a suspension of dividend payments. Intel’s client PC business, which encompasses chips used in laptops and desktops worldwide, saw an 8 per cent decline in revenue last year, largely due to overall weakness in the PC market. Qualcomm eyeing strategic portions of Intel’s business Qualcomm, known for its dominance in the mobile chip market and a key supplier to Apple, has been evaluating potential pieces of Intel’s chip design operations.
Although Qualcomm has not yet formally approached Intel about any acquisition, the mobile chipmaker has been exploring these options for several months. Sources indicate that Qualcomm’s interest is primarily focused on Intel’s PC client design business, which could help the company diversify its product portfolio beyond mobile devices. While Intel’s server segment is considered less appealing to Qualcomm, other design units remain under consideration.
The discussions within Qualcomm are still at an early stage, and plans could evolve or change, the sources said. As of now, neither Qualcomm nor Intel has confirmed or commented on these reports. Intel’s financial troubles Intel’s financial situation has been challenging in recent quarters, prompting the company to look for ways to streamline its operations and preserve cash.
In the second quarter, Intel reported significant losses, leading to a 15 per cent reduction in its workforce and a halt on paying dividends to shareholders. The company’s revenue from its PC client business fell to $29.3 billion last year, reflecting a continued decline in demand for personal computers.
Intel has been working on ways to drive consumer interest back to its PC business, including the development of artificial intelligence-powered PCs. Earlier this week, the company launched a new PC chip called Lunar Lake, which is designed for superior performance in AI applications. However, a significant portion of these chips was fabricated by TSMC, deviating from Intel’s traditional in-house production model.
Intel’s board is expected to meet next week to review proposals from CEO Pat Gelsinger and other executives on how to reduce operational costs. One option under consideration, according to reports, is the sale of its programmable chip unit, Altera. As Intel continues to face financial pressures, further asset sales and business unit divestitures could be on the horizon.
For Qualcomm, acquiring parts of Intel’s chip design business could provide a strategic opportunity to expand its reach into new markets. However, with no formal discussions yet initiated, it remains to be seen whether Qualcomm will move forward with any acquisition plans..
