Sources familiar with the matter told the Journal that Qualcomm made the offer in recent days.The New York Times corroborated the report, adding that the two companies are in talks though no official offer has been made yet.
Qualcomm CEO Cristiano Amon is reported to be personally involved in the negotiations. Amon is reported to be actively examining various options for a deal for the company. Earlier this month, Reuters reported that Qualcomm explored the possibility of acquiring portions of Intel’s design business and that its PC design unit was of particular interest. Qualcomm executives were examining Intel’s entire portfolio of businesses.
Intel shares at all-time low
Intel, with a market value of approximately $87 billion, has seen its shares drop about 60% this year. The company recently announced a $1.6 billion quarterly loss and plans to cut 15,000 jobs.
A deal, if pursued, would face substantial hurdles. Antitrust scrutiny would likely be intense given the size and strategic importance of both companies in the US semiconductor industry. However, some may view it as an opportunity to strengthen the country’s competitive edge in chips.
Qualcomm, valued at around $185 billion, is known for its dominance in mobile chip technology. In contrast, Intel has struggled to capitalise on the smartphone revolution and the recent boom in artificial intelligence chips.
The Wall Street Journal reported that to facilitate a deal, Qualcomm might consider selling certain assets or parts of Intel to other buyers.
Both companies declined to comment on the matter when approached by various news publications.
Last week, Intel spun off its foundry business as an independent subsidiary, which bagged a deal with Amazon for AI chips. Amidst restructuring, Intel is selling a stake in Altera. It also said it would pause construction at its chip factory project in Europe for two years.