Qualcomm Inc. has approached Intel Corp. regarding a potential acquisition, sources familiar with the situation have reported, signaling the possibility of one of the largest mergers and acquisitions (M&A) in the tech industry. The California-based chipmaker has proposed a friendly takeover of Intel, although it has not dismissed the idea of acquiring or divesting certain segments of the company.
The discussions come as Intel faces significant challenges, with its shares having dropped approximately 37% over the past year, reducing its market value to around $93 billion. In contrast, Qualcomm’s stock has surged over 50%, bringing its market capitalization to about $188 billion. If finalized, the deal could rank among the largest in history, according to Bloomberg data.
Qualcomm is actively engaging with U.S. regulators, believing that an all-American merger could mitigate antitrust concerns. However, any agreement would likely face rigorous scrutiny and could take considerable time to finalize.
Intel’s CEO, Pat Gelsinger, remains committed to a turnaround strategy aimed at reviving the company’s fortunes but is also open to evaluating potential deals. Meanwhile, Intel’s declining revenue—estimated at $52 billion for 2024, which is just 70% of its 2021 figures—highlights the urgency of addressing its operational challenges.
In recent developments, Intel secured a multibillion-dollar agreement with Amazon Web Services to co-develop a custom AI semiconductor, signaling a renewed focus on innovation. The company is also restructuring its foundry operations into a wholly-owned subsidiary, aiming to present itself as an independent supplier to potential clients, some of whom may compete with Intel.
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Intel’s shares saw a boost of over 3% following reports of Qualcomm’s interest. While other competitors like Broadcom Inc. are not currently pursuing offers for Intel, the situation remains fluid as both companies explore their options with advisers.
Representatives from both Qualcomm and Intel have declined to comment on the ongoing discussions.
