Qualcomm has been exploring the possibility of acquiring segments of Intel’s chip design business, sources familiar with the situation revealed. The mobile chipmaker, known for its smartphone chips and major clients such as Apple, is reportedly interested in Intel’s client PC design business. This move comes as Intel struggles with cash flow and looks to divest certain business units. Qualcomm’s interest appears to focus primarily on the PC chip design sector, rather than Intel’s server segment, as it aligns better with Qualcomm’s portfolio.
Intel recently experienced significant financial setbacks, including an 8% drop in PC client business revenue, layoffs, and a pause in dividend payments. Qualcomm’s plans to purchase parts of Intel have been under consideration for several months, though no official approaches or agreements have been made. While Qualcomm and Intel both declined to comment on the potential acquisition, sources indicated that these exploratory talks are ongoing and subject to change.
Intel, which is facing pressure to streamline its operations, is weighing options to reduce costs, including the possible sale of its programmable chip unit, Altera. The company remains committed to its PC business, particularly with new AI-focused chips like Lunar Lake. Despite its challenges, Intel continues to innovate, recently launching a PC chip with AI performance enhancements. Qualcomm, meanwhile, posted $35.82 billion in revenue last year, indicating its financial strength to pursue potential acquisitions.