Qualcomm has reportedly approached Intel about a potential takeover, according to a recent report from The Wall Street Journal. While no official offer has been made, sources indicate that the deal is still “far from certain.” The New York Times also confirmed this report, noting that Qualcomm has yet to submit a formal bid.
If the takeover were to proceed and clear regulatory scrutiny, it would represent a significant move for Qualcomm, which has recently re-entered the desktop processor market as part of Microsoft’s AI-driven strategy, building on its dominance in mobile processors.
Intel, in contrast, is facing serious challenges. The company reported a $1.6 billion loss earlier this year, despite several profitable segments. This financial strain has led to major strategic shifts, including a workforce reduction of over 15% and the halting of “nonessential” projects. CEO Pat Gelsinger announced plans to spin off its chip manufacturing division, a historically strong unit compared to rivals like AMD and fabless chipmakers that rely on Taiwan’s TSMC for production.
Additionally, Intel has had to rely on TSMC for the production of some of its advanced chips, further impacting its financial performance. The company is also encountering difficulties with its in-house 18A manufacturing process.
Although AMD has faced its own challenges, it has managed to regain significant market share, particularly within the gaming community. Meanwhile, Intel’s reputation among PC gamers has suffered due to performance issues in recent generations of its flagship chips. Despite extending warranties and implementing fixes, Intel’s standing in the consumer market remains shaky, and it has lost a contract to design and manufacture the chip for Sony’s upcoming PlayStation 6 to AMD.
