Reports suggest that Qualcomm is actively pursuing the acquisition of Intel. According to sources, Qualcomm CEO Cristiano Amon is personally involved in the discussions. This news adds a new chapter to Intel’s ongoing saga of restructuring and strategic shifts.
Intel has been overhauling its operations in recent months. They sold their stake in Arm Holdings and reduced their workforce by 15%. Pat Gelsinger, Intel’s CEO, recently announced a shift in focus to their foundry business. The company’s pivot is aimed at cutting costs in traditional data center semiconductors while increasing investment in AI chips and manufacturing services.
Reuters highlights that discussions between Qualcomm and Intel are in their early stages. Last month, reports indicated that Qualcomm was considering acquiring segments of Intel’s design business. However, no formal offer has been made yet.
Investors have taken note of these developments. Following reports that Apollo Global Management might invest up to $5 billion in Intel, the company’s shares surged. This follows another deal, made in June, where Apollo gained a 49% stake in an Intel manufacturing plant in Ireland.
The potential acquisition has significant implications for the industry. If successful, it would mark a monumental shift in the semiconductor market. However, analysts are skeptical about the deal’s regulatory approval. The size and scope of such an acquisition could attract intense scrutiny from regulators.
