Qualcomm explores buying parts of Intel’s business

While Qualcomm has yet to approach Intel formally, the potential acquisition is part of a broader strategic consideration that remains subject to change.
Intel has qualified for $3.5 billion in federal grants to make semiconductors for the Pentagon.

Qualcomm is exploring the possibility of acquiring parts of Intel’s design business to enhance its product lineup, according to sources familiar with the discussions. The mobile chipmaker is particularly interested in Intel’s client PC design business but also considers other segments. Intel, currently facing financial difficulties and seeking to offload assets, has not been approached by Qualcomm and has stated its commitment to its PC business.

Qualcomm, known for its smartphone chips and a major Apple customer, has been contemplating the acquisition for several months. However, the company’s plans remain uncertain and could evolve. Intel recently reported a significant drop in PC business revenue and has implemented cost-cutting measures, including staff reductions and a dividend pause, as it struggles to fund its manufacturing operations.

Intel’s board will meet next week to review options for trimming operations, which may include selling its programmable chip unit, Altera. Meanwhile, Intel recently launched a new AI-focused PC chip called Lunar Lake, signalling its continued push to innovate despite financial challenges.