Qualcomm reportedly wants to acquire rival chipmaker Intel

Key Takeaways

• Qualcomm is in talks to acquire industry rival Intel, per new reports.
• The CEO of Qualcomm, Cristiano Amon, is said to be personally involved in the negotiations.
• A deal has not been struck yet, though there are several unanswered questions about how Qualcomm will manage Intel's diverse portfolio.

Qualcomm is a popular figure in the smartphone industry, thanks primarily to its Snapdragon series of chipsets that power both midrange and flagship phones. The company's reach extends beyond smartphones, though, with chip design being its area of expertise. A new report is now shedding light on what could be Qualcomm's next big move - an acquisition of rival chipmaker Intel, which has been going through a disastrous past few years in the industry.

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A report by The Wall Street Journal claims Qualcomm has reached out to Intel in the past few days to discuss a potential takeover, citing information from people with inside knowledge. However, the same report goes on to warn that a deal is far from done, with the WSJ rightly pointing out that an acquisition of this scale wouldn't go unnoticed by US regulators. Qualcomm might be willing to sell certain portions of Intel to other willing buyers for the required go-ahead, the report adds.

It's still early days, and we may not hear much on this front for a while yet. But if the deal goes through, it would mark a spectacular fall from grace for Intel, which held a market value of just over $290 billion in 2020 and now stands at approximately $90 billion. By comparison, Qualcomm's market value currently fluctuates around the $185 billion mark. Neither Qualcomm nor Intel have commented on the WSJ report.

The CEO is 'personally involved'

Qualcomm supplies chips for phones like the Samsung Galaxy S24 Ultra

In another report, Reuters cited a source who passed down similar information, adding that Qualcomm CEO Cristiano Amon is "personally involved" in the discussions to acquire Intel. Amon has reportedly been going through "various options" to ensure a deal is struck. This comes on the heels of a Reuters report earlier this month, which suggested that Qualcomm is interested in buying parts of Intel's chip design business. As it stands, however, Qualcomm hasn't made an offer for Intel, per an additional anonymous source quoted by Reuters.

There are a lot of unknowns right now, including how Qualcomm will finance the deal if it ever gets to that stage. Moreover, there's no word on how Qualcomm will manage Intel's diverse portfolio of products, such as contract manufacturing. As for Intel, the company has experienced a terrible 2024, with its shares dropping by around 60% since the beginning of the year, as Reuters notes.