Qualcomm has been considering acquiring portions of Intel’s chip design business as part of a move to broaden its product portfolio. Qualcomm’s primary interest is in Intel’s PC client design business, which might complement its present portfolio, particularly given the growing need for AI-enabled PCs. However, the corporation has also investigated other design divisions within Intel.
Intel, which is dealing with financial issues such as a major decrease in workforce and decreasing PC sales, is considering selling off non-core business segments to help stabilize its finances. This proposed deal might allow Intel to refocus on its core activities, while Qualcomm looks to diversify beyond the traditional mobile processor market. However, these negotiations are still in the exploring stage, and Qualcomm has not made a formal proposal so yet.
Qualcomm is particularly interested in Intel’s PC client design business. With the arrival of artificial intelligence (AI)-powered PCs, Qualcomm sees an opportunity to diversify beyond its typical concentration on mobile chips found in smartphones. By acquiring these assets, Qualcomm may increase its position in the PC industry, particularly as AI-enabled devices become more common.
Intel’s PC business has long been the foundation of its operations, producing chips for laptops and desktop computers used around the world. However, the overall weakening of the PC market has harmed Intel’s revenue, prompting it to consider asset sales. Intel reported an 8% decline in PC client business sales, and the company is looking for ways to sustain its production capacity while controlling cash flow.
