Qualcomm Explores Acquisition of Intel's Chip Design Business Segments

Qualcomm has explored acquiring pieces of Intel chip design business

Qualcomm has explored the possibility of acquiring portions of Intel's design business to boost the company's product portfolio, according to two sources familiar with the matter. The mobile chipmaker has examined acquiring different pieces of Intel, which is struggling to generate cash and looking to shed business units and sell off other assets, the people said. Intel's client PC design business is of significant interest to Qualcomm executives, one of the sources said, but they are looking at all of the company's design units. Other pieces of Intel such as the server segment would make less sense for Qualcomm to acquire, another source with knowledge of Qualcomm's operations said. Qualcomm has not approached Intel about a potential acquisition and declined to comment on its plans, an Intel spokesperson said. Intel is "deeply committed to our PC business," the spokesperson said. Qualcomm declined to comment. The $184 billion Qualcomm, which is known for chips found in smartphones and counts Apple as a customer, has been working on plans to buy pieces of Intel for months. Qualcomm's interest and plans have not been finalized and could change, according to the sources. The two sources declined to be named as they were not authorized to discuss the matter publicly. Intel reported a disastrous second quarter last month, which included a 15% reduction in its staff and a pause on paying dividends. Executives are grappling with how to continue to fund the company's manufacturing plans and generate cash. Its PC client business revenue dropped 8% to $29.3 billion last year, amid overall weakness in the PC market. Once known for it's "Intel Inside" marketing campaign, Intel's client group makes laptop and desktop chips used in machines around the world. Executives have said the introduction of artificial intelligence PCs will drive consumers to upgrade their computers and generate more sales. Qualcomm generated $35.82 billion in overall revenue in its last fiscal year. Earlier this week Intel launched a new PC chip called Lunar Lake that its executives said offers superior performance for AI applications. Taiwan Semiconductor Manufacturing Co. fabricated significant portions of the chips, which Intel historically did in-house. Intel's board is set to meet next week to weigh a proposal from Intel CEO Pat Gelsinger and other executives on how to trim its operations in an attempt to save cash. Potential options include a sale of its programmable chip unit, Altera, Reuters reported.

Exclusive-Qualcomm has explored acquiring pieces of Intel chip design business, sources say

The mobile chipmaker has examined acquiring different pieces of Intel, which is struggling to generate cash and looking to shed business units and sell off other assets, the people said. Intel's client PC design business is of significant interest to Qualcomm executives, one of the sources said, but they are looking at all of the company's design units. Other pieces of Intel such as the server segment would make less sense for Qualcomm to acquire, another source with knowledge of Qualcomm's operations said. Qualcomm has not approached Intel about a potential acquisition and declined to comment on its plans, an Intel spokesperson said. Intel is "deeply committed to our PC business," the spokesperson said. The $184 billion Qualcomm, which is known for chips found in smartphones and counts Apple as a customer, has been working on plans to buy pieces of Intel for months. Qualcomm's interest and plans have not been finalized and could change, according to the sources. The two sources declined to be named as they were not authorized to discuss the matter publicly. Intel reported a disastrous second quarter last month, which included a 15% reduction in its staff and a pause on paying dividends. Executives are grappling with how to continue to fund the company's manufacturing plans and generate cash. Its PC client business revenue dropped 8% to $29.3 billion last year, amid overall weakness in the PC market. Once known for it's "Intel Inside" marketing campaign, Intel's client group makes laptop and desktop chips used in machines around the world. Executives have said the introduction of artificial intelligence PCs will drive consumers to upgrade their computers and generate more sales. Qualcomm generated $35.82 billion in overall revenue in its last fiscal year. Earlier this week Intel launched a new PC chip called Lunar Lake that its executives said offers superior performance for AI applications. Taiwan Semiconductor Manufacturing Co. fabricated significant portions of the chips, which Intel historically did in-house. Intel's board is set to meet next week to weigh a proposal from Intel CEO Pat Gelsinger and other executives on how to trim its operations in an attempt to save cash. Potential options include a sale of its programmable chip unit, Altera, Reuters reported. (Max A. Cherney in San Francisco and Anirban Sin, Milana Vinn and Mike Spector in New York; Editing by Kenneth Li)

Qualcomm has explored acquiring pieces of Intel chip design business, sources say

SAN FRANCISCO/NEW YORK - Qualcomm has explored the possibility of acquiring portions of Intel's design business to boost the company's product portfolio, according to two sources familiar with the matter. The mobile chipmaker has examined acquiring different pieces of Intel, which is struggling to generate cash and looking to shed business units and sell off other assets, the people said. Intel's client PC design business is of significant interest to Qualcomm executives, one of the sources said, but they are looking at all of the company's design units. Other pieces of Intel such as the server segment would make less sense for Qualcomm to acquire, another source with knowledge of Qualcomm's operations said. Qualcomm has not approached Intel about a potential acquisition and declined to comment on its plans, an Intel spokesperson said. Intel is "deeply committed to our PC business," the spokesperson said. Qualcomm declined to comment. The $184 billion Qualcomm, which is known for chips found in smartphones and counts Apple as a customer, has been working on plans to buy pieces of Intel for months. Qualcomm's interest and plans have not been finalized and could change, according to the sources. The two sources declined to be named as they were not authorized to discuss the matter publicly. Intel reported a disastrous second quarter last month, which included a 15% reduction in its staff and a pause on paying dividends. Executives are grappling with how to continue to fund the company's manufacturing plans and generate cash. Its PC client business revenue dropped 8% to $29.3 billion last year, amid overall weakness in the PC market. Once known for it's "Intel Inside" marketing campaign, Intel's client group makes laptop and desktop chips used in machines around the world. Executives have said the introduction of artificial intelligence PCs will drive consumers to upgrade their computers and generate more sales. Qualcomm generated $35.82 billion in overall revenue in its last fiscal year. Earlier this week Intel launched a new PC chip called Lunar Lake that its executives said offers superior performance for AI applications. Taiwan Semiconductor Manufacturing Co. fabricated significant portions of the chips, which Intel historically did in-house. Intel's board is set to meet next week to weigh a proposal from Intel CEO Pat Gelsinger and other executives on how to trim its operations in an attempt to save cash. Potential options include a sale of its programmable chip unit, Altera, Reuters reported. (Max A. Cherney in San Francisco and Anirban Sin, Milana Vinn and Mike Spector in New York; Editing by Kenneth Li)

Intel's faltering business is attracting another chipmaker

As Intel looks for options to fix its faltering business, another chipmaker is reportedly interested in buying some of its chip design units. Qualcomm has looked into buying parts of Intel's business for months, and most of the interest is in the chip pioneer's client PC design unit, Reuters reported, citing unnamed people familiar with the matter. The company, which designs chips for smartphones, including for Apple, has not brought its plans to Intel, an Intel spokesperson told Reuters, adding that it's "deeply committed to our PC business." Sources told Reuters that Qualcomm hasn't finalized plans, and interests could change. Neither Intel nor Qualcomm immediately responded to a request for comment. Meanwhile, Intel is reportedly working with its longtime investment bankers at Morgan Stanley and Goldman Sachs on options to save its business after missing revenue expectations and seeing its shares fall around 60% so far this year. This could include splitting its foundry division which designs and manufactures chips, cutting factory projects, and M&A, Bloomberg reported, citing unnamed people familiar with the matter. Potential options will reportedly be presented at a company board meeting this month. However, people told Bloomberg, the talks with bankers are in their early stages. In August, Intel saw its shares fall 27% after missing revenue expectations for the second quarter. Intel reported revenue of $12.8 billion in the second quarter of 2024 -- down 1% from the previous year. Wall Street had expected $12.9 billion, according to analysts' estimates on FactSet. The chipmaker's missed profit expectations were partly due to its decision to "more quickly ramp" its Core Ultra artificial intelligence CPUs, or core processing units, that can handle AI applications, Intel chief executive Pat Gelsinger said on the company's earnings call. Gelsinger also announced the company's plans to cut spending, including by laying off more than 15% of employees. "Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate," Gelsinger wrote in a memo to employees. "Our revenues have not grown as expected -- and we've yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low. We need bolder actions to address both - particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected."

Qualcomm has explored acquiring pieces of Intel chip design business, sources say

Qualcomm has explored the possibility of acquiring portions of Intel's design business to boost the company's product portfolio, according to two sources familiar with the matter. The mobile chipmaker has examined acquiring different pieces of Intel, which is struggling to generate cash and looking to shed business units and sell off other assets, the people said. Intel's client PC design business is of significant interest to Qualcomm executives, one of the sources said, but they are looking at all of the company's design units. Other pieces of Intel such as the server segment would make less sense for Qualcomm to acquire, another source with knowledge of Qualcomm's operations said. Qualcomm has not approached Intel about a potential acquisition and declined to comment on its plans, an Intel spokesperson said. Intel is "deeply committed to our PC business," the spokesperson said. Qualcomm declined to comment. The $184 billion Qualcomm, which is known for chips found in smartphones and counts Apple as a customer, has been working on plans to buy pieces of Intel for months. Qualcomm's interest and plans have not been finalized and could change, according to the sources. The two sources declined to be named as they were not authorized to discuss the matter publicly. Intel reported a disastrous second quarter last month, which included a 15% reduction in its staff and a pause on paying dividends. Executives are grappling with how to continue to fund the company's manufacturing plans and generate cash. Its PC client business revenue dropped 8% to $29.3 billion last year, amid overall weakness in the PC market. Once known for it's "Intel Inside" marketing campaign, Intel's client group makes laptop and desktop chips used in machines around the world. Executives have said the introduction of artificial intelligence PCs will drive consumers to upgrade their computers and generate more sales. Qualcomm generated $35.82 billion in overall revenue in its last fiscal year. Earlier this week Intel launched a new PC chip called Lunar Lake that its executives said offers superior performance for AI applications. Taiwan Semiconductor Manufacturing Co. fabricated significant portions of the chips, which Intel historically did in-house. Intel's board is set to meet next week to weigh a proposal from Intel CEO Pat Gelsinger and other executives on how to trim its operations in an attempt to save cash. Potential options include a sale of its programmable chip unit, Altera, Reuters reported. Published - September 06, 2024 04:55 pm IST Read Comments

Exclusive-Qualcomm has explored acquiring pieces of Intel chip design business, sources say

SAN FRANCISCO/NEW YORK (Reuters) - Qualcomm has explored the possibility of acquiring portions of Intel's design business to boost the company's product portfolio, according to two sources familiar with the matter. The mobile chipmaker has examined acquiring different pieces of Intel, which is struggling to generate cash and looking to shed business units and sell off other assets, the people said. Intel's client PC design business is of significant interest to Qualcomm executives, one of the sources said, but they are looking at all of the company's design units. Other pieces of Intel such as the server segment would make less sense for Qualcomm to acquire, another source with knowledge of Qualcomm's operations said. Qualcomm has not approached Intel about a potential acquisition and declined to comment on its plans, an Intel spokesperson said. Intel is "deeply committed to our PC business," the spokesperson said. Qualcomm declined to comment. The $184 billion Qualcomm, which is known for chips found in smartphones and counts Apple as a customer, has been working on plans to buy pieces of Intel for months. Qualcomm's interest and plans have not been finalized and could change, according to the sources. The two sources declined to be named as they were not authorized to discuss the matter publicly. Intel reported a disastrous second quarter last month, which included a 15% reduction in its staff and a pause on paying dividends. Executives are grappling with how to continue to fund the company's manufacturing plans and generate cash. Its PC client business revenue dropped 8% to $29.3 billion last year, amid overall weakness in the PC market. Once known for it's "Intel Inside" marketing campaign, Intel's client group makes laptop and desktop chips used in machines around the world. Executives have said the introduction of artificial intelligence PCs will drive consumers to upgrade their computers and generate more sales. Qualcomm generated $35.82 billion in overall revenue in its last fiscal year. Earlier this week Intel launched a new PC chip called Lunar Lake that its executives said offers superior performance for AI applications. Taiwan Semiconductor Manufacturing Co. fabricated significant portions of the chips, which Intel historically did in-house. Intel's board is set to meet next week to weigh a proposal from Intel CEO Pat Gelsinger and other executives on how to trim its operations in an attempt to save cash. Potential options include a sale of its programmable chip unit, Altera, Reuters reported. (Max A. Cherney in San Francisco and Anirban Sin, Milana Vinn and Mike Spector in New York; Editing by Kenneth Li) By Anirban Sen, Max A. Cherney, Milana Vinn and Mike Spector

Qualcomm Looking To Acquire Some Of Intel's Chip Design Division To Boost Its Entry Into The Client PC Business

Qualcomm is reportedly looking to acquire some of Intel's chip design business in an attempt to bolster competition and improve its own product portfolio. Intel's financial situation is completely a mess right now, with the firm looking towards options in order to get out of this turmoil, and one way to do so is by selling existing assets, whether it is the company's divisions or even production facilities. The whole fiasco, which was initially ignited by Intel's 14th Gen & 13th Gen CPU instability issues, has now turned into the company's "worst financial period" in 56 years of history, and getting out of it right now will take a lot of work done. Reuters reports that Intel's competition, Qualcomm, is looking towards acquiring Intel's chip design business, as the division has apparently impressed Qualcomm's executives. Specifically, Qualcomm wants to make a statement in the client PC business, which is why they feel like having Intel's resources onboard will boost the firm's entry into the market. However, it is said that Qualcomm hasn't approached Intel formally, and right now, this is only a rumor but an interesting one. Intel has stated its commitment towards the client PC segment, claiming that the firm will continue to run and thrive. Hence, the selling of a key sector of its business won't be the right move here. However, Qualcomm has been making huge strides in the Windows PC markets recently, especially in the mobile segment through its Snapdragon X Elite SKUs, as the company managed to bag in $35.82 billion in overall revenue last year and is set to generate even higher once the AI PC hype starts kicking in the markets. Team Blue is trying every way to generate cash flow, and immediate measures include the sale of its FPGA unit Altera, along with halting the development of Intel's $30 billion German facility. Apart from this, the firm is said to be in contact with the Biden government to get an incentive through the CHIPS Act, with the demanded amount reaching up to $8.5 billion in grants and $11 billion in loans, according to Bloomberg. Hence, it won't be wrong to say that Intel is in a pile of mess here. We are likely going to see some shocking decisions being taken by Intel in the coming week, notably after the board meeting, where it is said that the company will reveal plans on how to limit its spending and generate capital.

Qualcomm may be planning to buy 'these parts' of Intel's chip design business - Times of India

Qualcomm, the mobile chipmaker, has been exploring the possibility of acquiring portions of Intel's chip design business, according to sources familiar with the matter. This move could potentially boost Qualcomm's product portfolio and expand its reach in the semiconductor industry. Reuters reports that Qualcomm's primary interest lies in Intel's client PC design business, although the company is examining all of Intel's design units.The $184 billion company, known for its smartphone chips, has been working on these acquisition plans for months, sources say. Intel, facing financial challenges, is currently considering selling off various business units and assets. The company recently reported a disappointing second quarter, resulting in a 15% staff reduction and a pause on dividend payments. CEO Pat Gelsinger is expected to meet with the company board next week to discuss the revival plan, which may include the proposal to sell off the Altera, of which Marvell is seen as potential buyer. Reports also suggests that Intel could split its chip manufacturing business While Qualcomm has not officially approached Intel about a potential acquisition, the interest comes at a critical time for both companies. Intel is set to hold a board meeting next week to discuss trimming operations and improving cash flow, according to Reuters. Intel's PC client business, once the cornerstone of its "Intel Inside" campaign, saw an 8% revenue drop to $29.3 billion last year. In contrast, Qualcomm reported $35.82 billion in overall revenue for its last fiscal year. The potential acquisition could reshape the semiconductor landscape, with Qualcomm potentially gaining a stronger foothold in the PC market. However, sources emphasise that Qualcomm's plans are not finalised and could change. Both companies have declined to comment on the matter. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Qualcomm might be Intel's savior after all | Digital Trends

Qualcomm is reportedly considering a strategic acquisition of Intel's PC client business, marking a significant shift for the ARM chipset maker. If this move materializes, it could reshape the competitive landscape of the PC industry, giving Qualcomm a foothold in the x86-dominated market while allowing Intel to refocus on its broader growth initiatives. According to an exclusive report from Reuters, two anonymous sources hinted at these discussions. However, no formal communication has occurred between Intel and Qualcomm so far. An Intel spokesperson emphasized the company's "deep commitment" to its PC business, echoing statements made at the recent Core Ultra Series 2 launch in Berlin. Recommended Videos Intel has faced significant challenges in recent months. Following its announcement of a 15% workforce reduction ahead of its earnings call, the company reported a historic drop in revenue, leading to a 20% plunge in stock prices and investor lawsuits. Revenue from its PC client business declined by 8% to $29.3 billion last year, reflecting broader challenges in the PC market. Meanwhile, Intel's 13th- and 14th-generation Raptor Lake desktop processors have been plagued by instability issues attributed to increased operating voltages caused by a microcode bug that results in crashes and system freezes. The potential rationale for Intel considering divesting its PC client division could be to recover costs. Offloading this segment could help the company free up resources to pursue leadership in high-growth areas like artificial intelligence, foundry services, and custom silicon development. Intel's long-term vision under CEO Pat Gelsinger is to establish itself as a leading chip manufacturer for other companies, and this deal could align with that strategy. For Qualcomm, acquiring parts of Intel's PC business would likely accelerate the transition to ARM-based computing. The company recently made strides in the Windows PC market, particularly in the mobile segment with its Snapdragon X Elite processors. Last year, the company reported $35.82 billion in overall revenue, and that figure is expected to grow as the AI-powered PC market gains momentum. By leveraging Intel's x86 expertise, Qualcomm could develop hybrid processors that combine ARM's energy efficiency with x86 performance, which is ideal for ultrathin laptops and mobile PCs. This could intensify competition in the PC market, challenging both Intel and AMD while providing consumers with more powerful, battery-efficient devices.

Qualcomm explored acquiring portions of Intel's chip design business

Intel reported a disastrous second quarter last month, which included a 15% reduction in its staff and a pause on paying dividends. Executives are grappling with how to continue to fund the company's manufacturing plans and generate cash. Its PC client business revenue dropped 8% to $29.3 billion last year, amid overall weakness in the PC market. Once known for it's "Intel Inside" marketing campaign, Intel's client group makes laptop and desktop chips used in machines around the world. Executives have said the introduction of artificial intelligence PCs will drive consumers to upgrade their computers and generate more sales.

Qualcomm eyes pockets of Intel design business - report (NASDAQ:QCOM)

Qualcomm (NASDAQ:QCOM) has looked into the potential buying of Intel's (NASDAQ:INTC) design business as the San Diego-based mobile chipmaker attempts to improve its product line, according to a Reuters report that cites two sources with knowledge. Such interest sparks amid Intel's (INTC) ongoing financial struggles and efforts to streamline operations, which may involve divesting certain business units. Qualcomm (QCOM) has been considering various parts of Intel's (INTC) design operations, particularly its client PC design division, which is of significant interest, one of the sources said. However, acquiring Intel's (INTC) server segment is deemed less logical for Qualcomm's (QCOM) strategic goals. Intel's (INTC) revenue from its PC client business fell 8% last year, reflecting broader weaknesses in the PC market. Intel (INTC) still remains committed to the segment and views it as crucial for future growth, with an anticipated rise in demand for AI PC products.

Apple Supplier Qualcomm Eyes Intel Units To Bolster Product Line: Report - Apple (NASDAQ:AAPL), Intel (NASDAQ:INTC)

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. See Also: Cathie Wood Congratulates Elon Musk On xAI Milestone After AI Firm Brings 100K Nvidia GPU Colossus Cluster Online In Just 122 Days: 'Many Big Announcements Ahead' 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 and 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: OpenAI Co-Founder Ilya Sutskever's AI Startup Raises $1B From Andreessen Horowitz, Sequoia As Sam Altman-Led Company Faces Exodus Image via Shutterstock This story was generated using Benzinga Neuro and edited by Pooja Rajkumari Market News and Data brought to you by Benzinga APIs