Qualcomm considers buying part of Intel's chip design division

Qualcomm is reportedly looking to acquire part of Intel's chip design division to create a springboard to penetrate the PC processor market more effectively, especially at a time when its rival is facing a difficult period of cash flow.

Intel's current financial situation can be described as completely chaotic. The world's leading semiconductor manufacturer is still struggling to find solutions to raise cash to get out of this difficult situation, and one of the effective options being considered is to sell part of its existing assets, whether it is development departments, product research or even production facilities. This whole dark picture is triggered by a series of instability problems encountered on Intel's 14th and 13th generation CPU lines. The company is going through the "worst financial period" in its 56-year history, and getting out of this situation will require a lot of effort, even loss.

Realizing the difficult situation that its competitors are facing, and also nurturing plans to enter the market of processors for personal computers and commercial servers, Qualcomm wants to consider the possibility of owning some parts from Intel, in order to expand its product portfolio. In particular, the company's executives are said to be particularly interested in the design of microprocessors for personal computers. This deal, if successful, will help fill the gap in Qualcomm's product portfolio, but of course the plan can change according to the actual situation.

Qualcomm's management feels that acquiring some of Intel's resources would significantly accelerate the company's market penetration. In addition to Qualcomm, Apple is also said to be exploring the acquisition of various Intel businesses.

However, in a recent statement to Reuters, an Intel representative confirmed that they have not received any official offer from Qualcomm, while reaffirming their commitment to the consumer PC segment, affirming that the company will continue to operate and develop.

Team Blue is looking for ways to generate cash flow, and immediate measures include selling its Altera FPGA unit, along with the decision to halt development of a $30 billion facility in Germany. Intel has also had to cut 15% of its workforce, suspend dividend payments, and is reportedly in talks with the Biden administration to receive incentives through the CHIPS Act, with the request amounting to $8.5 billion in grants and $11 billion in loans.

Intel is really struggling, and it is possible that the market could see some shocking decisions from the company in the coming weeks. Let's wait and see!

Isabella Humphrey

Update 09 September 2024