Qualcomm Explores Acquisition of Intel’s PC Design Business Amid Financial Struggles

Qualcomm Eyes Intel’s Design Business

Qualcomm, the well-known mobile chip manufacturer, is exploring the possibility of acquiring parts of Intel’s design business, particularly its client PC design unit. This move could significantly enhance Qualcomm’s product offerings as it looks to diversify beyond smartphone chips.

Intel Faces Financial Pressure

Intel has been grappling with financial challenges, including a cash crunch, prompting the company to consider selling off certain business units. Qualcomm has shown interest in these design units, especially Intel’s client PC business, which focuses on chips for laptops and desktops.

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Client PC Design Unit of High Interest

Among Intel’s divisions, the client PC design unit is of particular interest to Qualcomm executives. However, other Intel segments, such as the server division, are not as appealing, according to insiders familiar with Qualcomm’s operations.

No Formal Discussions Between the Companies

Although Qualcomm has been examining the possibility of this acquisition for months, no official discussions have taken place between the two companies. Intel, meanwhile, has reiterated its commitment to its PC business, with both companies declining to comment on the potential deal.

Intel’s Struggling PC Business

Intel’s PC client business reported an 8% decline in revenue, falling to $29.3 billion last year. This downturn in the PC market has added to Intel’s financial woes, leading the company to consider selling off assets and cutting costs to stay afloat.

Qualcomm’s Growing Ambitions

Known for its smartphone chips, Qualcomm generated $35.82 billion in revenue last fiscal year. Acquiring parts of Intel could further broaden its reach into the PC chip market, a sector Intel has long dominated.

Intel Bets on AI for a Comeback

Intel hopes that the rise of artificial intelligence (AI) in PCs will drive consumers to upgrade their devices, boosting future sales. Recently, Intel launched the Lunar Lake PC chip, designed to offer superior AI performance, with key portions fabricated by Taiwan Semiconductor Manufacturing Co.

Intel Board to Weigh Strategic Options

As Intel’s financial struggles continue, its board is set to meet next week to discuss potential ways to streamline operations. Among the options on the table is the possible sale of its programmable chip unit, Altera, as part of its efforts to reduce costs and generate cash.