Qualcomm Eyeing Intel In Potential Takeover: Report
Intel has faced mounting challenges in recent years, with increasing competition and financial setbacks taking a toll on the company
Qualcomm is reportedly considering a takeover of Intel, which is a significant shift in the competitive landscape of the semiconductor industry. According to a report from The Wall Street Journal, Qualcomm has approached Intel regarding a possible acquisition, though the deal remains uncertain and is likely to attract substantial regulatory scrutiny.
Intel has faced mounting challenges in recent years, with increasing competition and financial setbacks taking a toll on the company. It recently reported a USD 1.6 billion loss and announced plans to lay off over 10,000 employees. The tech giant’s valuation has plummeted to approximately USD 87 billion, with its shares dropping by 60 per cent this year alone. This downturn has been due to fierce competition, rapid technological changes, and strategic missteps.
The loss of Apple as a major customer in 2020 marked a pivotal moment for Intel, as the tech giant transitioned to its own custom-designed M-series chips, built on ARM architecture. This shift not only underscored Intel’s vulnerabilities but also highlighted the changing dynamics within the industry.
On the other hand, Qualcomm has been making strides in the PC market with its Snapdragon processors, which power many Android smartphones. The recent launch of its Snapdragon X Plus and Snapdragon X Elite chips, praised for their AI capabilities and performance, reflects Qualcomm’s ambitions beyond mobile devices. Acquiring Intel could provide Qualcomm with critical assets and technologies to bolster its presence in the PC and server sectors.
