Qualcomm considering buying parts of Intel's chip-design business

Qualcomm might acquire parts of Intel’s chip-design business, exploring Intel's PC design unit to diversify products.

: Qualcomm is exploring the acquisition of parts of Intel’s chip-design business, specifically its PC design unit. This move aims to diversify Qualcomm's product lineup and gain new market footholds. Intel recently reported a tough second quarter, prompting its exploration of selling divisions to reduce costs. Qualcomm has not yet initiated talks with Intel.

Qualcomm is considering acquiring parts of Intel’s chip-design business, particularly focusing on Intel's PC design division. This potential acquisition could allow Qualcomm to diversify its offerings and enter new markets, leveraging its existing success with the X Elite chips in the laptop segment.

Although Qualcomm hasn't begun formal negotiations, anonymous sources reveal that Qualcomm executives have been evaluating Intel's design units for several months. Intel remains committed to its PC business, which could complicate Qualcomm's plans, but Qualcomm's substantial market cap of $184 billion provides ample financial backing.

Intel is coping with substantial challenges, including a disastrous second quarter that resulted in a 26% drop in shares and a $30 billion loss in value. Faced with these hurdles, Intel is considering selling parts of its business, including the programmable chip division Altera, to generate cash and stabilize its manufacturing plans.

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