Intel, once the undisputed leader in x86 processors, could be facing a significant acquisition by its fellow chip giant, Qualcomm.
According to the Wall Street Journal, Qualcomm has approached Intel about a potential takeover “in recent days”. This news comes at a time when Intel has been grappling with declining profits, manufacturing challenges, and strategic shifts.
Qualcomm, known for its smartphone processors, has been making inroads into the desktop processor market. It partnered with Microsoft and its AI PC strategy and have disrupted the market with their Snapdragon X Series-powered laptops based on Arm architecture.
While a merger with Intel is “far from certain” according to sources familiar with the matter, it would significantly expand Qualcomm’s presence in this space and challenge Intel’s dominance.
Intel, on the other hand, has been facing numerous challenges. The company has announced layoffs, strategic changes, and a spin-off of its chipmaking business.
Additionally, Intel has had to partially rely on external manufacturers like TSMC to produce its most advanced chips, a departure from its previous strategy.
The acquisition would also have significant implications for the broader chip industry. It could reshape the competitive landscape and potentially lead to increased consolidation. The deal would also likely face regulatory scrutiny, given the potential antitrust concerns.
Intel declined to comment on the report, while Qualcomm has yet to respond.
