Say it isn’t so: It’s no secret that Intel has been going through a rough patch lately. Sensing an opportunity, Qualcomm has been eyeing Intel’s design units with great interest. It is reportedly exploring acquiring Team Blue’s PC design division.Qualcomm considering buying parts of Intel’s chip-design business
Anonymous sources familiar with the matter told Reuters that Qualcomm executives have been examining Intel’s various design units for months to determine whether any would fit their product portfolio. Some segments are more enticing than others for the mobile-first firm. While the mainline PC client design business is the real prize, others, like server chips, are less attractive.
It’s worth noting that Qualcomm hasn’t begun any negotiations with Intel about a potential acquisition yet. An Intel spokesperson also clarified to Reuters that the company is “deeply committed” to its PC business, which might throw a wrench in Qualcomm’s plans.
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Still, the mere fact that Qualcomm is considering this move is fascinating. The company likely has the funds to pull it off, too. Qualcomm’s worth is nearly twice that of Intel, boasting a market cap of $184 billion. Meanwhile, Team Blue’s value has shrunk to less than $100 billion.
Acquiring parts of Intel’s design business could be a way for Qualcomm to diversify its product lineup and gain a foothold in new markets. The company is already making inroads into the laptop market with its X Elite chips, promising far greater power efficiency than x86-based offerings. If any deal of this sort goes through, it could help Qualcomm soften competition while bolstering its technology. Of course, the whole situation is still in the exploratory phase, so we’ll have to wait for official confirmation.
In the meantime, Intel is facing some critical challenges. The company reported a disastrous second quarter, following which its shares tumbled 26 percent in a single day, wiping out $30 billion in value. The company also plans to lay off 15 percent of its global workforce as part of an effort to reduce operating expenses.Qualcomm considering buying parts of Intel’s chip-design business
Intel’s executives are scrambling to figure out how to keep the company’s manufacturing plans afloat and generate some much-needed cash. Options like selling parts of the business, including its programmable chip division Altera, are on the table. So, Qualcomm’s acquisition prospects are there if it decides to make a move.
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