Qualcomm approaches Intel about a possible takeover

Qualcomm has reportedly approached Intel to explore a potential acquisition of the struggling chip giant. 

Qualcomm CEO Cristiano Amon is believed to be personally involved in the negotiations to acquire the company, with various options being considered for a deal, sources told Reuters.  

According to earlier reports, Qualcomm was exploring the possibility of acquiring parts of Intel’s design business.  

No formal offer to Intel has been made yet and talks are said to be in an initial stage.

Qualcomm doesn’t manufacture its own chips but relies on companies such as TSMC and Samsung to handle production.

This has been a particularly bad year for Intel, once the world’s most valuable chipmaker, with shares losing around 60% of their value since the start of the year.

Antitrust regulators in the United States and other countries are likely to look closely at any such deal between the two companies.

Many questions remain, including how Qualcomm, with a market value of USD 188 billion, would finance a bid for Intel, which is valued at USD 122 billion (including its debt). 

Qualcomm generates less revenue than Intel. It reported USD 35.8 billion in sales in fiscal 2023, compared with Intel’s USD 54.2 billion for the same period.

If it goes through, the agreement would be one of the largest tech mergers in history.  

However, other mega acquisitions in the tech space have been scuttled. In 2017, Broadcom made a bid to buy Qualcomm, a potential deal exceeding $100 billion that was ultimately blocked by the Trump administration citing national security considerations.