Qualcomm's Potential Takeover Bid for Intel Shakes Up Semiconductor Industry

Qualcomm approached Intel about takeover bid in recent days

Chipmaker Qualcomm approached its struggling rival Intel about a potential takeover in recent days, according to two people familiar with the matter. A deal is far from certain and no formal offer has been made, according to people with knowledge of the approach. A person close to Qualcomm said the chipmaker would only pursue a friendly deal, and people with knowledge of Intel's thinking said the company harbours concerns that a deal would be stymied by antitrust regulators. A full takeover of Intel would top Microsoft's $69bn acquisition of Activision as the largest technology deal in history. Intel's market capitalisation was $93bn on Friday after its share price jumped 8 per cent following an initial report on Qualcomm's approach by The Wall Street Journal. Once the world's largest chipmaker, Intel's years-long fall from grace has accelerated in recent months. The company lost nearly $30bn in market value in August after a disastrous earnings report in which chief executive Pat Gelsinger announced 15,000 job cuts and scrapped its dividend. Intel's share price has declined 50 per cent since the start of this year, putting the company on the defensive about the risk of approaches from potential bidders and the threat of hostile shareholders. Intel is working with Goldman Sachs and Morgan Stanley to evaluate Qualcomm's approach, people with knowledge of the matter said. For several months investment bankers from Morgan Stanley have been advising it on how to defend itself from activist investors, a move previously reported by CNBC. Intel is considering a wide range of asset sales, people familiar with the company's thinking said. Qualcomm raised the possibility of a full takeover of Intel after exploring an acquisition of several Intel assets, people familiar with the matter said, confirming an earlier report by Reuters. Unlike Intel, Qualcomm does not build its own chips and instead outsources production to outside manufacturers. Qualcomm, which has a $188bn market capitalisation, is working with investment bank Evercore to evaluate its approach to Intel. It is unclear how it would fund a wholesale takeover of Intel, or whether it would divest assets as part of a takeover. A deal is likely to face intense antitrust scrutiny and political concerns over national security. Should a deal go forward, it would be pitched to US regulators as a bid to strengthen American chipmakers in their race to compete with Chinese manufacturers, according to people familiar with the matter. The people cautioned that a lengthy acquisition process could cause the chipmakers to fall behind foreign rivals, a concern that may scuttle a deal. Intel and Goldman Sachs declined to comment. Morgan Stanley, Evercore and Qualcomm did not immediately respond to requests for comment. The approach adds to mounting pressure on Gelsinger, who was appointed in 2021 and is three years into a five-year turnaround plan to transform Intel into a chip manufacturer that rivals industry leader Taiwan Semiconductor Manufacturing Company. The company has hit several stumbling blocks along the way: high profile executives have departed, including industry veteran Lip-Bu Tan who left the company's board. Intel has also lagged rivals Nvidia and AMD in sales of artificial intelligence chips to data centres. Intel shareholders would probably balk at a sale to Qualcomm, analysts at Citi argued in a note published on Friday. They said Intel should instead exit its semiconductor manufacturing business "as we believe the company has a very small chance of becoming a profitable leading-edge foundry". Takeover talks are "almost too silly to comment on", they wrote.

Qualcomm may be trying to buy Intel | TechCrunch

Chipmaker Qualcomm is trying to buy rival Intel, according to multiple reports. The Wall Street Journal first broke the news late Friday that Qualcomm had approached Intel about a takeover. The New York Times then corroborated the story, while also saying no official offer has been made. Even if there is an offer, it's not clear whether Intel would accept it or if regulators would approve. (Neither Qualcomm nor Intel immediately responded to TechCrunch's request for comment.) Once the industry leader, Intel has been struggling due to a lack of mobile strategy. It reported a $1.6 billion loss in the second quarter of this year and has been implementing a $10 billion cost reduction plan that would eliminate 15,000 jobs. It's also moving to spin out its chip foundry business as an independent subsidiary. Intel currently has a market capitalization of around $90 billion, while Qualcomm has a market cap of around $190 billion. Both companies have been overshadowed recently by Nvidia as the AI boom drives demands for chips.

Qualcomm Approaches Intel For a Possible Takeover

The deal is unlikely to materialize as it would attract the ire of regulators globally. Amid Intel going through its worst phase, Qualcomm has made a bid to acquire Intel, reports The Wall Street Journal. The report quotes people who are familiar with the matter and said the deal is "far from certain." On the other side, The New York Times also confirmed that Qualcomm approached Intel in recent days for a potential takeover, but there has been no official offer yet. According to the NYT, Qualcomm and Intel spokesperson declined to comment on the current development. Recently, Intel's market value collapsed to $93 billion with a drop of 60% in share value. In contrast, Qualcomm's market cap has ballooned to $18 trillion, making its place among the world's 100 most valuable companies. After the AI boom, Intel has struggled with its foundry business. The company has not been able to transition to smaller process nodes while TSMC has been surging ahead with state-of-the-art lithography processes. Not to mention, Nvidia has become the most valuable company in the world, thanks to the Generative AI boom, so in the server space too, Intel has lost many customers. Intel's Gaudi AI accelerator has failed to take off. All that said, the deal between Intel and Qualcomm is unlikely to materialize as it would attract regulators' scrutiny from around the world. Recently, under the CHIPS Act, Intel was awarded $8.5 billion in grants from the US govt to build new chip plants. The US govt is aiming to support domestic chip companies to boost semiconductor manufacturing and maintain a reliable supply chain inside the country. Not to mention, amid geopolitical tensions, having a domestic chip company would help the US sustain technological independence. Besides all the doom and gloom, Intel's client-side business seems poised to take on Qualcomm's ARM-based Snapdragon X series processors. The new x86-based Intel Lunar Lake chipsets look promising, and with recent reports indicating that Snapdragon X Elite underperformed in the market, it seems Intel may regain some ground, after all.

Qualcomm approached Intel about a takeover in recent days, source says

The conversations with Intel are at an early stage. The San Diego-based company has not made a formal offer for Intel, according to third person familiar with the matter. The sources requested anonymity as the discussions are confidential. Intel declined to comment. Qualcomm did not immediately respond to a Reuters request for comment. The approach by Qualcomm comes at a moment of weakness for Intel, which was once the most valuable chipmaker in the world, but whose shares have lost nearly 60% of their value since the start of the year. A deal, should it go ahead, would likely invite scrutiny from antitrust regulators in the United States, China and Europe. Qualcomm may be required to divest parts of Intel in order to gain regulatory approvals. A bid would mark the biggest takeover attempt in the technology industry since Broadcom sought to buy Qualcomm for $142 billion in 2018, before President Donald Trump nixed the tie-up, citing national security risks. Reuters could not determine how Qualcomm, which has a market value of $188 billion, would finance a bid for Intel, which is valued at $122 billion, including its debt. Qualcomm has roughly $13 billion in cash, according to recent company filings. It is also unclear how Qualcomm would handle the takeover of Intel's contract manufacturing business. To build chips with an atomic level of precision, Intel has invested hundreds of billions of dollars over decades on its fabrication process and amassed tens of thousands of engineers to do it. Qualcomm has never operated a chip factory, or fab, and currently contracts the likes of Taiwan Semiconductor Manufacturing Co and uses designs and other technology supplied by Arm Holdings. Once the dominant force in chipmaking, Intel ceded its manufacturing edge to Taiwanese rival TSMC and failed to produce a widely desired chip for the generative AI boom capitalized on by Nvidia and AMD. Intel has been attempting to turn its business around by focusing on AI processors and creating a chip contract manufacturing business, known as a foundry. As part of a memo from CEO Pat Gelsinger, Intel released a series of announcements that stemmed from a board meeting last week. Gelsinger and other executives presented a plan to shave off businesses and restructure the company, Reuters has previously reported. The company plans to pause construction on factories in Poland and Germany, and reduce its real estate holdings. Intel also said it had reached a deal to make a custom networking chip for Amazon.com's AWS. The Wall Street Journal reported on Qualcomm's talks with Intel earlier on Friday. (Reporting by Max A. Cherney in San Francisco, Harshita Mary Varghese and Juveria Tabassum in Bengaluru; Editing by Shounak Dasgupta and David Gregorio)

Qualcomm reportedly approached Intel for what would be the biggest chip deal ever

Intel Corp. shares climbed after the Wall Street Journal reported that Qualcomm Inc. approached the company about a takeover, a potential record-setting deal for the chip industry. The discussions occurred in recent days, the newspaper said, citing unnamed people familiar with the situation. Even so, a deal is far from certain, according to the Journal. Representatives for Intel and Qualcomm declined to comment. The shares rose 3.4% to $21.87 in New York trading Friday, rebounding from a decline earlier in the day. The stock remains down 56% this year. Intel, once the world's largest chipmaker, has been struggling with flagging sales and mounting losses -- exacerbated by the loss of its technological edge. The company's market valuation, at $93.5 billion, is now roughly half of Qualcomm's. Still, a takeover would be the largest-ever transaction for the semiconductor market and potentially transform the industry. Shares of San Diego-based Qualcomm declined 2.9%, reflecting investors' concerns about the risks of such a deal. Intel, based in Santa Clara, California, announced a raft of changes this week aimed at getting its business back on track. The moves included a multibillion-dollar deal with Amazon.com Inc. to make a custom AI semiconductor and a plan to turn Intel's ailing manufacturing business into a wholly owned subsidiary. Qualcomm is the world's biggest designer of smartphone processors, but it's been trying to branch out into more areas. That includes chips that that run personal computers, where Intel is still the dominant player. Like much of the industry, Qualcomm doesn't do its own chip production. It outsources manufacturing to partners like Taiwan Semiconductor Manufacturing Co., which also makes chips for Nvidia Corp. and Advanced Micro Devices Inc. Acquiring Intel could potentially provide Qualcomm with access to its own production in the US, as well as giving it the biggest brand in the market for PCs and traditional server computers. But Intel's problems wouldn't be solved by a Qualcomm takeover. The would-be suitor also has no experience in handling manufacturing or doing the science behind cutting-edge production technology -- an area where TSMC excels. Qualcomm was involved in a contentious takeover saga more than six years ago, when Broadcom Inc. attempted to acquire the company. Broadcom walked away from the bid after President Donald Trump blocked the deal, citing national security risks.

Qualcomm asked chip rival Intel if it would consider a sale

Qualcomm has not yet made an official offer for Intel, one of the people said, and the obstacles to a deal remain steep. Any deal would likely draw significant regulatory scrutiny, given the mammoth size and national security importance of both chip companies. It is unclear whether regulators would allow Qualcomm to buy Intel without taking on its struggling foundry business, and it remains equally unclear whether Qualcomm would want to take on that complex endeavor.Chipmaker Qualcomm has approached its rival Intel in recent days about the possibility of acquiring the slumping Silicon Valley giant, two people familiar with the matter said Friday, requesting anonymity because the talks were confidential. Qualcomm has not yet made an official offer for Intel, one of the people said, and the obstacles to a deal remain steep. Any deal would likely draw significant regulatory scrutiny, given the mammoth size and national security importance of both chip companies. It is unclear whether regulators would allow Qualcomm to buy Intel without taking on its struggling foundry business, and it remains equally unclear whether Qualcomm would want to take on that complex endeavor. A deal would also be costly. Intel, which has seen its shares fall nearly 40% over the last year, has a market capitalization of $93 billion. Qualcomm, which has seen its shares rise 55%, has a market value of $169 billion. Qualcomm and Intel, through spokespeople, both declined to comment. The Wall Street Journal earlier reported Qualcomm's approach. That any chipmaking rival would consider trying to buy Intel would have been inconceivable a decade ago. But years of management issues and whiffs on technology transitions have weakened what was once one of Silicon Valley's most powerful companies. Intel missed out on selling chips for mobile phones and has failed to capitalize on the boom in artificial intelligence, a field rival Nvidia now dominates with specialized chips used in data centers. Intel's chip manufacturing operations, once the most advanced, also lost a technology lead to Taiwan Semiconductor Manufacturing Co. Intel's problems were underscored in early August, when it announced a $1.6 billion quarterly loss and plans to cut 15,000 jobs. The company, the largest planned recipient of federal financing under legislation called the CHIPS Act, on Monday announced other moves that include plans to pause the setting up of new plants in Germany and Poland. Qualcomm, based in San Diego, is a leader in cellular technology and provides chips used in flagship smartphones from companies such as Apple and Samsung Electronics. Unlike Intel, Qualcomm has never operated factories, a costly business that most chip designers avoid. So it would seem more likely to be interested in the Intel operations that design chips, as well as its broad expertise in PC software and channels for selling those systems, said Patrick Little, a former Qualcomm executive who now is CEO of SiFive, a Silicon Valley startup that sells rival microprocessor designs. "Those are things Qualcomm would have to mature on their own over time," Little said. "If they worked with or somehow had a piece of Intel that could accelerate that part of their strategy." Any effort to buy Intel would likely face a tough antitrust review and would be scrutinized closely on national security grounds, since its design and manufacturing operations are important for defense applications and overall U.S. competitiveness in semiconductors.

Qualcomm Asked Chip Rival Intel if It Would Consider a Sale

The chipmaker Qualcomm has approached its rival Intel in recent days about the possibility of acquiring the slumping Silicon Valley giant, two people familiar with the matter said Friday, requesting anonymity because the talks were confidential. Qualcomm has not yet made an official offer for Intel, one of the people said, and the obstacles to a deal remain steep. Any deal would likely draw significant regulatory scrutiny, given the mammoth size and national security importance of both chip companies. It is unclear whether regulators would allow Qualcomm to buy Intel without taking on its struggling foundry business, and it remains equally unclear whether Qualcomm would want to take on that complex endeavor. A deal would also be costly. Intel, which has seen its shares fall nearly 40 percent over the last year, has a market capitalization of $93 billion. Qualcomm, which has seen its shares rise 55 percent, has a market value of $169 billion. Qualcomm and Intel, through spokeswomen, both declined to comment. The Wall Street Journal earlier reported Qualcomm's approach. That any chip-making rival would consider trying to buy Intel would have been inconceivable a decade ago. But years of management issues and whiffs on technology transitions have weakened what was once one of Silicon Valley's most powerful companies. Intel missed out on selling chips for mobile phones and has failed to capitalize on the boom in artificial intelligence, a field rival Nvidia now dominates with specialized chips used in data centers. Intel's chip manufacturing operations, once the most advanced, also lost a technology lead to Taiwan Semiconductor Manufacturing Company. Intel's problems were underscored in early August, when it announced a $1.6 billion quarterly loss and plans to cut 15,000 jobs. The company, the largest planned recipient of federal financing under legislation called the CHIPS Act, on Monday announced other moves that include plans to pause the setting up of new plants in Germany and Poland. Qualcomm, based in San Diego, is a leader in cellular technology and provides chips used in flagship smartphones from companies such as Apple and Samsung Electronics. Unlike Intel, Qualcomm has never operated factories, a costly business that most chip designers avoid. So it would seem more likely to be interested in the Intel operations that design chips, as well as its broad expertise in PC software and channels for selling those systems, said Patrick Little, a former Qualcomm executive who now is chief executive of SiFive, a Silicon Valley start-up that sells rival microprocessor designs. "Those are things Qualcomm would have to mature on their own over time," Mr. Little said. "If they worked with or somehow had a piece of Intel that could accelerate that part of their strategy." Any effort to buy Intel would likely face a tough antitrust review and would be scrutinize closely on national security grounds, since its design and manufacturing operations are important for defense applications and overall U.S. competitiveness in semiconductors. Lauren Hirsch reported from New York and Don Clark from San Francisco.

Qualcomm Reportedly Approached Intel About Takeover Deal

With Intel's market cap hovering around $93 billion, the deal for the chipmaker would rank among the largest in tech industry history if it actually happens. Chip designer Qualcomm reportedly approached Intel in recent days about a takeover of the beleaguered chipmaker in what would be one of the biggest tech deals ever. According to The Wall Street Journal, which cited people familiar with the matter, a deal for Intel is far from certain. The Journal said the deal was sure to attract regulatory scrutiny if a deal came together. The Journal also said Qualcomm could possibly sell assets or parts of Intel to other buyers. A spokesperson for Intel declined to comment on the news. CRN has reached out to Qualcomm for comment. Santa Clara, Calif.-based Intel has lost more than 50 percent of its market value so far this year as it's been dealing with major competition from rivals amid a surge of demand for AI. Intel's market valuation stood at $93 billion on Friday, while San Diego, Calif.-based Qualcomm's market cap was $188 billion. At the same time, Intel's chief AI chip rival Nvidia has seen its market valuation soar to $2.85 trillion as of Friday. In August, Intel said that it would embark on a $10 billion cost-cutting plan that would result in 15,000 jobs being cut. On Monday, Intel CEO Pat Gelsinger outlined a flurry of changes and wins at the company, including plans to turn its contract chip manufacturing business into an independent subsidiary. If Qualcomm does announce a deal to buy Intel, it would be the largest tech acquisition ever, overtaking Dell Technologies' $67 billion 2016 deal for EMC and Microsoft's 2022 $68.7 billion deal for Activision Blizzard. There are no words to describe the impact of such an acquisition if it happens, said Erik Stromquist, chairman of CTL, a Portland, Ore.-based custom system builder and longtime Intel channel partner. "I don't know how to even digest that transaction," Stromquist told CRN. "There are no words to describe the impact to our industry. As a loyal Intel customer for a long time, I think it would take some time to digest what it means. I think if it gives Intel a new trajectory and a new strategic vision, then I'm for it. I just want to make sure the channel is a consideration, but I don't think we're strongly a consideration for Intel anymore." Stromquist said industry watchers in general would have concerns about Intel's commitments if a deal happens. "I mean commitment to product roadmaps, commitment to long-term company sustainability, and commitment to supporting the channel itself versus the multinationals," he said. "Intel's been a core ingredient for the channel. They've been our sun. Assuming this deal goes through, then I would hope that the channel continues to be a focus for Qualcomm in supporting people that use Intel technology." Stromquist said CTL has looked at working with Qualcomm in the past. "If this deal goes through, we would look forward to working with Qualcomm," he said.

Qualcomm may be mulling an Intel takeover, report claims -- what you need to know

The Wall Street Journal reported late Friday that chipmaker Qualcomm reached out to competitor Intel about a potential takeover. A deal of this magnitude would be one of the most consequential tech acquisitions in quite some time, and it's believable given that Intel has been on the ropes and pacing behind its competitors over the last few years when it comes to the chip business. However, the WSJ reports that a deal is "far from certain," according to sources familiar with the matter. Intel may or may not be receptive to the deal, which makes sense when you consider Qualcomm could tear Intel apart by selling assets or part of the company to other buyers. Based on the stock market at the time of reporting, Qualcomm is currently worth double the value of Intel and is trending up. Qualcomm is best known for making the chips that power most Android phones on the market, and its high-end Snapdragon 8 Gen 3 drives popular phones like the Samsung Galaxy S24 Ultra. This year, Qualcomm also greatly expanded their business into Intel's realm by launching the Snapdragon X Plus and Snapdragon X Elite chips featured in new Microsoft Copilot+ PCs like the Surface Pro 11. Qualcomm beat out Intel and AMD to have the first chips powering these new AI-forward Windows laptops, though Intel does have Lunar Lake-powered Copilot+ PCs launching this fall. Qualcomm has leaned hard into AI as well, recently hosting events at the company's Southern California headquarters highlighting how their processors add AI features in phones and computers. Last year, the Wall Street Journal reported that Qualcomm had reached out to Intel to have the Silicon Valley company make Snapdragon chips at Intel's foundries. The effort was halted due to "technical missteps." Meanwhile, Intel appears to be falling further behind rivals like AMD and Broadcom. In August, it was reported that Intel was going to lay off 15,000 workers in a cost-saving effort (an estimated 15% of the company's workforce) with CEO Pat Gelsinger looking to slash $10 billion in 2025. Factor in the fact that the company had posted a $1.6 billion loss in Q2 of this year, and it gets easier to imagine Intel selling to a competitor. Avi Greengart, a consumer technology analyst and founder of Techsponential, seemed skeptical about how Qualcomm and Intel could make a deal work. "I initially assumed that the idea here was that Qualcomm would take over the client side business allowing Intel to focus on its foundry business," Greengart said in a statement to Tom's Guide. "I have absolutely no idea how the financials of that would work for either party; how could Qualcomm pay for it and how could Intel fund the foundry business without it." He added that because both companies are global entities, it would open them to regulatory approval everywhere, which adds additional complexities to the issue. We'll have to wait and see if any real deal materializes out of all this scuttlebutt. Stay tuned!

Qualcomm approached Intel about acquisition, report claims

The Wall Street Journal reports a deal was discussed, but is "far from certain." Qualcomm has its eye on Intel. According to a report from the Wall Street Journal, Qualcomm approached the struggling Intel about a potential takeover deal. The deal is described as "far from certain" and likely to garner antitrust investigations. If a deal occurred, it could also have far-reaching effects on the x86 architecture. It's possible that Qualcomm could only be interested in portions of Intel, or, the WSJ suggests, could sell portions of the company in order to get a deal through. Intel has been in crisis mode since it reported a $1.6 billion loss due to struggling data center and foundry divisions (though many parts of the company are still profitable). Putting Intel Foundry Services in a position to make chips for other companies has been a cornerstone idea for CEO Pat Gelsinger's tenure (the other being to move through five nodes in four years to catch up on the design side and catch up to TSMC, which Intel has outsourced some manufacturing to.) Intel declined to comment to Tom's Hardware. Qualcomm has yet to respond to a request for comment. The company announced that it would lay off more than 15% of its employees, suspend its dividend to investors, spin its foundry business into an independent subsidiary, pause fab projects in Germany and Poland, and put a stop to any non-essential work. The company has also had some PR disasters with instability issues with its 13th and 14th Gen Core desktop processors while running games (Intel since extended warranties and issued microcode updates to alleviate the problem. In August, Lip-Bu Tan left Intel's board after two years of service, creating a huge gap in technical knowledge on the board. Intel is also working with Morgan Stanley in an attempt to prepare for potential challenges from activist investors, clearly anticipating challenges. Intel has been key to the U.S. government's plans to strengthen the domestic chip business, with the company awarded $8.5 billion in funding to boost manufacturing on top of reports that it will bring in another $3.5 billion to make chips for the Pentagon as part of the Secure Enclave program. It's unclear how these deals could be affected by a takeover. Additionally, Intel and AMD have cross-licensed their respective x86 IP. In the event of an acquisition, it's possible one or both of the companies could lose access to key portions of the platform. This would surely be a significant point of any negotiation in an attempt to take over Intel. In the PC world, Qualcomm is finally competing in the laptop market with the launch of its Snapdragon X processors. These have been received far better than previous Windows on Arm CPUs by the press, and Microsoft made them the first to qualify as Copilot+ PCs. Qualcomm is challenging Intel in terms of efficiency and battery life ahead of the launch of Lunar Lake. Most of Qualcomm's work, however, is in mobile phones, as well as in cellular towers and communications. In recent years, Intel has also seen increased competition from AMD on the client PC side and from Nvidia, which has effectively taken over the AI space.

Qualcomm approaches 'Intel' for acquisition: US Media reports

As per the report, although no formal offer has been made, discussions have taken place in recent days, highlighting the possibility of a landmark deal between two of the largest chipmakers in the world. The report stated that the talks are confidential, and the likelihood of a deal remains uncertain due to regulatory challenges and the complexity of Intel's operations. "Qualcomm has not yet made an official offer for Intel, one of the people said, and the obstacles to a deal remain steep. Any deal would likely draw significant regulatory scrutiny, given the mammoth size and national security importance of both chip companies" reported New York Times. Intel, once a dominant force in the semiconductor industry, has faced significant setbacks in recent years. A combination of management issues and missed technological transitions, including its failure to capitalize on the rise of mobile chips and artificial intelligence (AI), has left the Silicon Valley giant trailing behind competitors like Nvidia and Taiwan Semiconductor Manufacturing Company. As per the report, Intel's manufacturing capabilities, once considered the most advanced, have also lost ground to rivals. In August, Intel reported a USD 1.6 billion quarterly loss and announced plans to cut 15,000 jobs. The company is also pausing new plant setups in Germany and Poland, despite being the largest recipient of federal financing under the CHIPS Act. Qualcomm, which specializes in cellular technology and provides chips for major smartphone makers like Apple and Samsung, has seen its stock rise by 55 per cent recently, giving it a market value of USD 169 billion. Intel, whose shares have fallen by nearly 40 per cent, is currently valued at USD 93 billion. A deal between the two would likely be costly and face intense regulatory scrutiny due to their size and strategic importance to U.S. national security. Industry experts suggest that Qualcomm may be more interested in acquiring Intel's chip design operations and expertise in PC software, rather than its foundry business, which manufactures chips. Given Qualcomm's history of outsourcing production, it remains uncertain whether the company would want to take on Intel's manufacturing arm. The report added that both Qualcomm and Intel declined to comment on the reports. However, if Qualcomm's bid progresses, it could signal a significant shift in the semiconductor landscape, with potential implications for the global chip market and U.S. technological competitiveness. (ANI)

Qualcomm approached Intel about a takeover in recent days: Report

Qualcomm made a takeover approach to chipmaker Intel in recent days, the Wall Street Journal reported on Friday, citing people familiar with the matter. Intel's shares closed up 3.3%, while Qualcomm was down 2.9%. Intel has been attempting to turn its business around by focusing on its chip foundry unit and artificial intelligence processors, but its shares have plummeted in recent months as it cut jobs, suspended its dividend and faced a high-profile board member resignation. A deal was far from certain, the WSJ report said, adding that even if Intel is receptive to an offer from Qualcomm, a deal of that size would attract antitrust scrutiny. To get the deal done, Qualcomm could intend to sell assets or parts of Intel to other buyers, according to the report. Intel manufacturing business suffers setback as Broadcom tests disappoint, sources say Intel declined to comment, while Qualcomm did not immediately respond to a Reuters request for comment. Earlier this month, Reuters reported that Qualcomm explored the possibility of acquiring portions of Intel's design business to boost the company's product portfolio. Qualcomm had examined acquiring different pieces of Intel, which is struggling to generate cash and looking to shed business units and sell off other assets, Reuters had reported. Analysts and investors had said that Intel was likely to be removed from the Dow Jones Industrial Average index. Intel's shares have declined 57% this year, making it the worst performer on the index and leaving it with the lowest stock price on the price-weighted Dow. Once dominant in the chip industry, Intel has been struggling to hold ground in the AI era and has lagged chip majors including Nvidia, AMD and Taiwan Semiconductor Manufacturing Co. Intel's foundry, or contract manufacturing business, signed up Amazon's cloud services unit as a customer for making custom artificial intelligence chips, providing some respite to strained investors. Published - September 21, 2024 10:09 am IST Read Comments

Qualcomm in Talks With Intel Over Takeover, Report Says

Expertise Smartphones | Smartwatches | Tablets | Telecom industry | Mobile semiconductors | Mobile gaming Qualcomm has approached chipmaker Intel about a possible takeover in recent days, according to a Wall Street Journal report Friday. Intel has been suffering its own recent failures, and a Qualcomm acquisition would be a big deal for the chip market. The report cited people familiar with the matter, who cautioned that a takeover is far from certain at this point. The magnitude of the deal would likely be scrutinized by antitrust regulators, as it would mean fewer competitors in the PC chips space. While Intel has been unveiling its Meteor Lake and hyping up its upcoming Lunar Lake next-generation PC chips, the company has also been hit with lawsuits from consumers claiming that Intel's Raptor Lake silicon from 2023 caused widespread computer failures. With increasing competition from AMD, Apple and Qualcomm itself, Intel has been struggling. The company suffered a blow when Apple switched to using its own in-house chips for the M-series of Mac silicon back in 2020, while AMD has taken more of the PC silicon market share with its own mid-range and high-end chips. Nvidia's continued GPU dominance has pressured Intel in offering processing muscle for high-performance tasks, like AI. Intel has also been slower to offer AI than its rivals, which have ridden the wave of artificial intelligence by offering their own cutting-edge AI-integrated solutions. Intel included some AI features in its Meteor Lake chips, but competitors like AMD's Ryzen AI mobile chips and others have been released that power Microsoft's line of Copilot Plus laptops (running the integrated AI assistant of the same name). All of which has led to a tough financial outlook for Intel, which announced last month that it would cut $10 billion in costs, including laying off over 15,000 employees, after a disappointing second quarter. Qualcomm, on the other hand, reported positive quarterly earnings at the end of July with growth in mobile and automotive sectors, which along with internet of things chip sales represented a diverse portfolio of products. Qualcomm unveiled its Snapdragon X series chips late last year with on-device AI, which debuted in Microsoft Copilot Plus-branded Surface laptops back in May. That's given Qualcomm, long known for producing mobile chips that have powered most of the world's Android phones for years, a foothold into the PC space once dominated by Intel. Intel declined to comment. Qualcomm did not respond to a request for comment by time of publication.

Qualcomm planning to buy Intel: Here's what we know so far - Times of India

Qualcomm, the San Diego-based chip giant, has approached rival Intel about a potential takeover, according to reports from The Wall Street Journal. The move comes as Intel, once the world's most valuable chip company, grapples with significant challenges in its business. Sources familiar with the matter told the Journal that Qualcomm made the offer in recent days.The New York Times corroborated the report, adding that the two companies are in talks though no official offer has been made yet. Qualcomm CEO Cristiano Amon is reported to be personally involved in the negotiations. Amon is reported to be actively examining various options for a deal for the company. Earlier this month, Reuters reported that Qualcomm explored the possibility of acquiring portions of Intel's design business and that its PC design unit was of particular interest. Qualcomm executives were examining Intel's entire portfolio of businesses. Intel shares at all-time low Intel, with a market value of approximately $87 billion, has seen its shares drop about 60% this year. The company recently announced a $1.6 billion quarterly loss and plans to cut 15,000 jobs. A deal, if pursued, would face substantial hurdles. Antitrust scrutiny would likely be intense given the size and strategic importance of both companies in the US semiconductor industry. However, some may view it as an opportunity to strengthen the country's competitive edge in chips. Qualcomm, valued at around $185 billion, is known for its dominance in mobile chip technology. In contrast, Intel has struggled to capitalise on the smartphone revolution and the recent boom in artificial intelligence chips. The Wall Street Journal reported that to facilitate a deal, Qualcomm might consider selling certain assets or parts of Intel to other buyers. Both companies declined to comment on the matter when approached by various news publications. Last week, Intel spun off its foundry business as an independent subsidiary, which bagged a deal with Amazon for AI chips. Amidst restructuring, Intel is selling a stake in Altera. It also said it would pause construction at its chip factory project in Europe for two years. 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 reportedly approached struggling rival Intel about a takeover

Qualcomm made a takeover approach to chipmaker Intel in recent days, the Wall Street Journal reported on Friday, citing people familiar with the matter. Intel's shares reversed course to rise 8%, while Qualcomm fell 4% in afternoon trade. Intel has been attempting to turn its business around by focusing on its chip foundry unit and artificial intelligence processors, but its shares have plummeted in recent months as it cut jobs, suspended its dividend and faced a high-profile board member resignation. Qualcomm and Intel did not immediately respond to Reuters requests for comment.

Qualcomm Reportedly Eyes Potential Takeover Of Intel Amid 60% Stock Decline, But Antitrust Concerns Loom - NVIDIA (NASDAQ:NVDA), Intel (NASDAQ:INTC)

Chip giant Qualcomm Inc. QCOM reportedly approached its struggling competitor Intel Corp. INTC for a possible takeover. What Happened: Qualcomm's takeover attempt was in recent days, which if it goes through, would be monumental given Intel's market value of roughly $90 billion, reported The Wall Street Journal, citing people familiar with the matter. However, the deal is far from a sure thing, with potential antitrust scrutiny posing a significant obstacle. Intel, once the world's most valuable chip company, has seen its shares plummet by about 60% this year. The company's market value was above $290 billion as recently as 2020. Qualcomm, on the other hand, has a market value of around $185 billion. See Also: Mark Cuban Says He Would Buy Rupert Murdoch's Fox News And Elon Musk's X But There Are Some Obstacles: 'If I Had Enough... I'd Buy It In A Heartbeat' A potential deal would significantly broaden Qualcomm's scope, supplementing its mobile phone chip business with Intel's chips, which are widely used in personal computers and servers. Both companies are striving to take advantage of the artificial intelligence boom, but they have been eclipsed by AI chip giant Nvidia Corporation NVDA. Intel has been dealing with significant crises, including a disappointing quarterly report in August, which led to plans for layoffs and a halt in dividend payments. The company also reported a loss of $1.6 billion for the second quarter, compared with a $1.5 billion profit a year earlier. Qualcomm's approach follows a more than three-year turnaround effort at Intel under CEO Pat Gelsinger that has yet to yield significant results, the report noted If the takeover is successful, it would rank as the all-time largest technology M&A deal, surpassing Microsoft Corporation's $69 billion acquisition of Activision Blizzard. Why It Matters: In August, Intel posted quarterly earnings of 2 cents per share, falling 80% short of the analyst consensus estimate of 10 cents and reflecting an 84.62% decline from the same quarter last year. Revenue for the quarter was $12.83 billion, slightly below the expected $12.94 billion and down 0.9% year-over-year. The Data Center and AI segment brought in $3 billion, a 3% decline, while Client Computing revenue rose 9% to $7.4 billion, and Network and Edge revenue slipped 1% to $1.3 billion. On the other hand, Qualcomm has been performing well, with a third-quarter earnings report highlighting an 11% year-over-year revenue increase. Read Next: JPMorgan CEO Jamie Dimon Thinks Social Media Platforms Like TikTok And Facebook Are 'A Total Stupid Waste Of Time' Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs

Qualcomm approached Intel about a takeover in recent days, WSJ reports

Sept 20 (Reuters) - Qualcomm (QCOM.O), opens new tab made a takeover approach to chipmaker Intel (INTC.O), opens new tab in recent days, the Wall Street Journal reported on Friday, citing people familiar with the matter. Intel's shares reversed course to rise 8%, while Qualcomm fell 4% in afternoon trade. Intel has been attempting to turn its business around by focusing on its chip foundry unit and artificial intelligence processors, but its shares have plummeted in recent months as it cut jobs, suspended its dividend and faced a high-profile board member resignation. Advertisement · Scroll to continue Qualcomm and Intel did not immediately respond to Reuters requests for comment. Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shounak Dasgupta Our Standards: The Thomson Reuters Trust Principles., opens new tab

Qualcomm Reportedly Taps Intel With An Acquisition Offer

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. With Wall Street seemingly unimpressed with Intel's latest flourishes to its turnaround strategy, including a jumbo deal with Amazon, the chipmaker might eventually conclude that an outright sale is its only viable exit from the current quagmire. And now, we reportedly have a serious offer that just might tempt Intel. To wit, the Wall Street Journal is now reporting that Qualcomm has approached Intel with a takeover offer. While the talks remain exploratory for now, any deal would have monumental ramifications for the industry at large. Also, given Intel's heft, any takeover deal is quite likely to attract antitrust scrutiny from the authorities. However, in what can prove to be an effective mitigating force, authorities in the US might judge such a takeover critical for national security purposes, thereby adding a potent tailwind to Qualcomm's purported buyout offer for Intel. Of course, after weeks of speculation, Intel recently revealed its latest game plan to counter a deep-seated malaise that is chipping away at its core competencies. The plan centers around enhancing momentum within the Foundry division. Specifically, Intel is now planning to spin out its manufacturing arm as a separate subsidiary, which adds some much-needed distance between Intel's chip design and manufacturing competencies and can play an important role in attracting additional customers. Of course, Amazon has now emerged as the anchor customer for Intel's chip fabrication ambitions. In the first phase of their planned collaboration, the chipmaker will leverage its "Intel 3" process to build a custom Xeon 6 chip for Amazon's data center workloads. In the second phase, Intel will produce an "AI fabric chip" for Amazon's AWS on its 18A manufacturing process, which is compatible with TSMC's 2nm process and is expected to enter the commercial phase in 2025. In addition to other steps that Intel has already announced to deliver $10 billion in cost savings, the company has paused the construction work in its factories in Poland and Germany for two years and delayed the operationalization of a new advanced packaging factory in Malaysia by aligning its boot up with "market conditions." Additionally, Intel has already implemented around half of its announced layoff plans, which will see ~15,000 employees exit the firm by the close of 2024. The company also plans to "reduce or exit about two-thirds of our real estate globally by the end of the year." Critically, Intel continues to move ahead with its projects in Arizona, Oregon, New Mexico, and Ohio. This should ensure continued support from the CHIPS Act funding, including $3.5 billion in federal funding under the so-called "Secure Enclave" initiative of the Department of Defense. Finally, in opposition to earlier rumors, Intel has reiterated its support for facilitating a public market debut for its FPGA arm, Altera. It remains to be seen how Intel's latest turnaround strategy affects its purported negotiations with Qualcomm.

Intel jumps after WSJ reports Qualcomm approached the struggling chipmaker about a deal

This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. Intel shares surged about 10% in afternoon trading on Friday, following the WSJ report. It closed up 3.3% on the day, and added a little more in after-hours action. Intel was once the world's largest chipmaker and a US technology powerhouse. Around 2018, this leadership began to crumble as TSMC steadily took over as the chip manufacturer of choice for most big tech companies, including Nvidia, Apple and Qualcomm. Qualcomm makes chips used in smartphones, including Apple iPhones, a market Intel missed out on. Intel mostly sells chips for PCs and data center servers, although Nvidia's GPUs have made serious inroads into this lucrative data center business. Semianalysis chief analyst Dylan Patel said Qualcomm and Intel would be an "odd" fit. "It would result in a lot of duplicate intellectual property, so there would need to be significant cost cutting," he told Business Insider. "Furthermore, Qualcomm has no ability to turn around the data center business, which is the most important one," he continued. Qualcomm would also struggle to improve Intel's Foundry business, Patel added. This foundry business makes chips for other companies and competes (ineffectively so far) with TSMC, which is now the clear world leader. An Intel spokesperson declined to comment. Qualcomm did not respond to a request for comment at the time of publication. Pat Gelsinger took over Intel as CEO in 2021 and attempted to reverse the tech giant's downward slide. The company's revenue has declined in recent years while rivals like Nvidia, TSMC, and Broadcom are riding the artificial intelligence wave to new heights. So far, Gelsinger has been perceived as unsuccessful and the company announced plans for 15,000 layoffs last month. On Monday, Intel announced a partnership with Amazon Web Services in which the chipmaker will produce custom designs for the cloud giant in what the companies called a "multi-year, multi-billion-dollar framework." Intel's stock shot up on Monday's announcement. Intel has mostly missed the AI boom. Its Gaudi 3 AI chip, intended to compete with Nvidia and AMD, is expected to generate just $500 million in sales this year. Nvidia will pull in many billions of dollars in the same period. Qualcomm has made moves toward competing more directly with Nvidia in the age of AI. The company joined a coalition called the UXL Foundation last year, along with Google and Intel with the objective of making hardware-agnostic software to go up against Nvidia's dominant CUDA platform.

Qualcomm may take over struggling rival Intel in the biggest tech M&A deal ever: Report

However, the deal is uncertain, with it potentially attracting antitrust scrutiny and also requiring Qualcomm to sell assets or parts of Intel to other buyers, the report read. Also Read: Boeing ousts its defense and space chief amid cost rise and Starliner fiasco If it does happen, it could be the largest tech M&A deal, even topping Microsoft's $69 billion Activision Blizzard billion acquisition, according to the report. This comes at a time when both Qualcomm and Intel are looking to profit from the AI boom, despite both being overshadowed by Nvidia. Intel is about to get up to an $8.5 billion grant potentially to set up US factories, with CEO Pat Gelsinger trying to turnaround the troubled chipmaker by manufacturing chips on contract for others, while Qualcomm, led by CEO Cristiano Amon already having approached Intel for making its chips in Intel's factories, which it backed out of after technical missteps, according to the report. Intel's market value used to be $290 billion in 2020. It is now just $90 billion and lags behind rivals like Qualcomm, Broadcom, Texas Instruments and AMD. Also Read: Oyo to buy iconic hotel chains Motel 6 and Studio 6 for $525 million for US expansion The company said it planned to lay off thousands of employees and pause dividend payments to save costs after reporting a loss of $1.6 billion for the second quarter, compared with a $1.5 billion profit a year earlier. Intel also announced earlier this week that it would further separate its chip manufacturing and design operations, along with halting Germany, Poland, and Malaysia factory projects until demand picks up again. However, rumours of the company splitting up emerged after it reported separate financial results of its manufacturing operations earlier this year, with analysts arguing it should be split and specialise in either chip design or chip manufacturing, according to the report.

Qualcomm reportedly approached Intel about a takeover. Analysts say they could face political scrutiny and 'little overlap.'

This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. Founded in 1968, Intel has been an American staple for the design of computer parts but has faced a decline over the past few years. A potential Qualcomm takeover could infuse some cash, but chip industry analysts say this would also raise antitrust scrutiny and execution challenges in the current political environment. Despite having little overlap between Qualcomm's mobile chip business and Intel's focus on PCs and data centers, the Biden Administration has historically been more skeptical of mergers, "There's very little overlap. I think that argument can be made that there's no consolidation, but I still would think that this would get a very close look instead of just a rubber stamp to the finish line," said Logan Purk, a senior analyst at Edward Jones. The foundry side of Intel's business could also be in question, putting its billions in CHIPS and Science Act funding in jeopardy. Intel has been a poster child for American chip manufacturing, with a recent $3 billion boost of CHIPS Act funding. "The government literally has a vested interest in this business succeeding," Purk said. "It makes it tough if you're Qualcomm wanting to spin this off and politically put yourself in that position." Previously, Qualcomm had explored buying pieces of Intel's design business, Reuters reported. Making the foundry an independent subsidiary "is the easiest way, as of today, to unlock value with Intel, given the substantial losses and investment that that foundry business requires," Purk said. Giving the foundry more independence allows it to "not be tied to the ups and downs of the CPU market, all of which has fallen from grandeur in the last two years," said Dan Morgan, a senior trust portfolio manager at Synovus. Intel's foundries would be expected to compete more against companies like GlobalFoundries, TSMC, and Samsung. Intel stock jumped 8% after Monday's announcements. Compared to companies such as Nvidia that design chips and pure-play foundries like TSMC that manufacture chips for customers, Intel's dual role of playing both roles has historically caused hesitation for its peers and potential customers. "There's always just some of that paranoia that if you're a top chip designer, and you are shipping your designs to Intel for them to build your chips, yet they also compete by building similar chips -- I think that makes some people skittish," Purk said. Intel's continued focus on CPUs rather than GPUs, which Nvidia focuses on and which is crucial to AI computing, has also hurt its relevance amid the AI boom, analysts said. "They got so many things going on, and the amount of money that it requires to do all of these different things is just off the charts," Morgan said. When Intel's rival, Advanced Micro Devices, was in a similar challenging financial situation in the 2000s, it split its design and manufacturing businesses into two companies and sold its foundries off to an Abu Dhabi investment firm. The costly chip manufacturing side became GlobalFoundries, one of the largest foundries in the world. Under CEO Lisa Su's leadership, AMD eventually focused its bets on more bleeding-edge technologies like high-computing architecture GPUs and AI. Intel faces a more difficult geopolitical environment in its next moves. Selling to a foreign company is not a "politically viable situation" due to supply chain national security concerns now, said Stacy Rasgon, a senior analyst at Bernstein Research. Gelsinger also announced Monday that the company would produce AI fabric chips for Amazon Web Services using its Intel 18A process node and a custom Xeon 6 chip on Intel 3. The expanded collaboration between the two tech companies helps give more confidence about Intel capturing the AI boom, Rasgon said. Still, doubts remain about this announcement, as Amazon already produces its own custom chips. "You have to bear in mind that Amazon already produces two chips on their own and they're still buying from Nvidia. Intel threw a bone out on AI, but I don't know how much that's really helped them," Morgan said. Intel also faces an uphill battle given its history of falling behind major development requests for its customers. After using Intel's chips for over 15 years on its Macbooks, Apple debuted its own in-house chip design with the M1 in 2020 and contracted out manufacturing to TSMC. "Intel completely missed the mobile chip revolution, basically declining Apple's business because they didn't think it'd be a high volume enough product, and we know how that turned out," Purk said.

Intel Shares Rise, Qualcomm Slides Following Report of Takeover Approach

Shares of Intel rose after Qualcomm made a takeover approach in recent days, The Wall Street Journal reported, citing people familiar with the matter. The stock was up 5.9%, to $22.38, in afternoon trading. Shares are down 58% since the beginning of the year. Qualcomm shares are down 3.7%, to $167.84, but have risen 16% since the start of the year. The takeover approach comes at a downbeat time for Santa Clara, Calif.'s Intel. The company, once a dominant chip maker, has struggled to gain a foothold in the market for artificial-intelligence chips that have driven the sales and valuations of Nvidia and some other rival chip makers. Intel reported a loss of $1.6 billion for the second quarter, compared with a $1.5 billion profit a year earlier. For its third quarter, the company forecast sales of roughly $13 billion in the third quarter, missing analyst forecasts. Qualcomm posted higher profit in its most-recent quarter, as sales in its QCT semiconductor segment increased. The company has also grown its market share in the car industry, which has become increasingly digital thanks to electrification trends and advances in autonomous driving. Shares of the San Diego company were down by as much as 5.5%, to $164.30, after the report before regaining ground.