Qualcomm Explores Potential Acquisition of Intel Amid Industry Shifts

Qualcomm has recently approached Intel about the possibility of a takeover, according to a source familiar with the situation. The deal, still in its early stages, could mark a significant shift in the semiconductor industry but faces multiple challenges. Qualcomm CEO Cristiano Amon is said to be personally involved in discussions, which have yet to result in a formal offer.

Earlier reports suggested Qualcomm was particularly interested in Intel’s PC design unit but was also evaluating the broader portfolio of the five-decade-old company. Despite the ongoing talks, the complexity of such a deal—given Intel’s scale and position—could face regulatory scrutiny from antitrust authorities in the U.S., Europe, and China.

Intel, which has seen its stock drop by nearly 60% this year, is currently undergoing a restructuring under CEO Pat Gelsinger, who aims to focus on AI processors and the chip contract manufacturing business. Intel has been attempting to regain its competitive edge in the wake of losing market share to rivals like TSMC, Nvidia, and AMD.

If Qualcomm proceeds, the deal would likely be the largest in the tech sector since Broadcom’s attempt to acquire Qualcomm for $142 billion in 2018—a bid blocked by then-President Donald Trump due to national security concerns. Financing the acquisition remains unclear, though Qualcomm holds $13 billion in cash, and Intel’s current market value stands at $122 billion, including its debt. Qualcomm, which outsources its chip production to manufacturers like TSMC, has no history of operating a chip factory, raising questions about how it would manage Intel’s extensive manufacturing operations.

Intel declined to comment on the potential deal, and Qualcomm has not yet responded to requests for comments.