Editor’s Note: The article has been updated with Intel’s response.
In a strategic move to enhance its product offerings, Qualcomm Inc. QCOM is reportedly contemplating the acquisition of certain segments of Intel Corp. INTC, according to insider sources.
What Happened: Qualcomm has been reportedly investigating the potential purchase of sections of Intel’s design business, Reuters reported on Friday. This is seen as a strategic move to strengthen Qualcomm’s product portfolio. Intel, currently grappling with cash generation issues, is considering divesting business units and selling other assets.
Qualcomm has shown particular interest in Intel's client PC design business, but is also considering other design units of the company. However, other Intel segments, such as the server segment, are less likely to be acquired by Qualcomm, according to another source familiar with Qualcomm’s operations.
Despite these explorations, Qualcomm has not yet approached Intel about a potential acquisition. An intel spokesperson clarified to Reuters that the team remains “deeply committed” to their PC business.
Qualcomm, a $184 billion company known for its smartphone chips and a key supplier to Apple Inc. AAPL, has been strategizing the purchase of Intel units for several months. However, these plans are not yet finalized and could change, the sources said.
Intel, which recently reported a challenging second quarter including a 15% staff reduction and a halt on dividend payments, is set to meet next week to discuss potential operational trims to save cash.
Intel declined to “comment on other companies” and added that the company is “deeply committed” to their business which includes their PC category. Qualcomm have yet to respond to Benzinga’s queries.
Why It Matters: This potential acquisition comes in the wake of a heated debate ignited by the launch of Microsoft Corp’s first laptop running on Qualcomm’s ARM-based microprocessor. The debate among tech enthusiasts and investors on Reddit has been focusing on the competitive dynamics between Qualcomm, AMD, and Intel.
Furthermore, Qualcomm recently promised that its new chips will power unprecedented battery life for AI PCs, a move that could be bolstered by the acquisition of Intel’s design units.
Read Next:
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
