Qualcomm is considering buying some parts of Intel’s chip design, in its strategy to diversify its product offering, insiders reveal. The leading mobile chip manufacturer, Qualcomm, which specializes in smartphone chips has been considering different aspects of Intel’s business with a focus on the client PC design division that is likely to strengthen Qualcomm personal computing segment.
Qualcomm Eyes Intel’s PC Division
Intel has had some revenue issues in the recent past – they had a second subpar quarter, made layoffs, and stopped paying dividends. As a result, it has been considering the possibilities of divestments of business units and other assets to create cash. Focusing mostly on Intel’s PC design business, Qualcomm has also been looking at other design units. But according to sources it seems to be less logical for Qualcomm to acquire Intel’s server segment.
While Qualcomm has not officially come to Intel with such proposal, ideas have been on the table for at least several months now. Qualcomm has an interest in such companies, and it might still have intentions in the future. The two firms have not said much concerning the issue; Intel’s representative asserted that the firm is committed to the PC sector while Qualcomm did not respond to the matter.
Intel’s Financial Struggles Drive Sale Talks
Intel, once known for its successful “Intel Inside” marketing campaign, saw its PC client business revenue drop by 8% last year, reaching $29.3 billion amid a weak PC market. The company is currently focusing on the introduction of artificial intelligence (AI) PCs, which it believes will drive consumers to upgrade their systems, leading to higher sales. Earlier this week, Intel launched its Lunar Lake PC chip, which is optimized for AI applications and was fabricated by Taiwan Semiconductor Manufacturing Co.
Intel’s board is set to meet next week to consider proposals from CEO Pat Gelsinger on how to streamline the company’s operations to save cash. Potential actions include the sale of its programmable chip unit, Altera. As Intel navigates through its challenges, Qualcomm’s interest in acquiring parts of its design business could present a new chapter for both tech giants.
Source: Reuters
