Qualcomm has approached Intel with an acquisition offer

Qualcomm has approached Intel with an acquisition offer that could redefine the semiconductor industry. The Wall Street Journal reports that Qualcomm’s potential purchase of Intel, valued at $90 billion, would surpass Microsoft's $69 billion acquisition of Activision Blizzard as the largest tech M&A deal ever.

Combining Qualcomm's mobile chip expertise with Intel's robust presence in personal computer and server processors, the merger would signify a significant strategic shift for Qualcomm. This comes at a time when Intel, under CEO Pat Gelsinger, is undergoing extensive restructuring, including a 15 percent workforce reduction and planned operational expense cuts of over $10 billion in the coming year.

However, the deal is far from certain, facing likely scrutiny from antitrust regulators due to the potential market dominance of the combined entity. Despite talks of asset sales and strategic realignment, Intel has reaffirmed its commitment to its PC business. Analysts believe a successful merger could boost U.S. competitiveness in the global chip market, especially against rising Asian competition.