Qualcomm CEO Cristiano Amon speaks at the COMPUTEX forum in Taipei, Taiwan, June 3, 2024.
Wang An | Reuters
Qualcomm get closer Intel Regarding the acquisitions in recent days, the Wall Street Journal Friday reportciting people familiar with the matter.
Intel shares rose 8% after the report was released.
If the deal goes through, it would be one of the largest technology mergers ever. Intel’s market capitalization is approximately $96 billion.
This would bring an end to Intel’s dire predicament. The company’s stock has its Biggest single day drop In August, the company reported disappointing earnings, a major event in more than 50 years. Intel shares are set to fall 53% in 2024 as investors cast doubt on its expensive chip manufacturing and design plans.
Qualcomm and Intel compete in multiple markets, including PC and laptop chips. However, unlike Intel, Qualcomm does not produce its own chips but relies on companies such as TSMC and Samsung for production.
Intel CEO Patrick Gelsinger said Monday after a board meeting to discuss strategy Memo to employees This reaffirms the company’s commitment to investing heavily in its foundry business, a project that could cost $100 billion over the next five years. It also said it was weighing outside investment.
Intel also missed out on the artificial intelligence boom that captured the attention of the tech industry. Analysts say most advanced artificial intelligence programs, such as ChatGPT, run on Nvidia graphics processors, not Intel CPUs, and Nvidia accounts for more than 80% of the fast-growing market.
Qualcomm’s revenue is lower than Intel’s. The company reported fiscal 2023 sales of $35.8 billion, compared with Intel’s $54.2 billion in the same period.
In a market where large deals have struggled to close in recent years, a deal of this size would trigger a lot of regulatory scrutiny. In 2017, Broadcom offered more than $100 billion to acquire Qualcomm. Trump administration blocked The following year, the deal was struck due to national security concerns, as Broadcom was then headquartered in Singapore.
In 2021, the Federal Trade Commission sued Blocked Nvidia’s attempt to acquire Arm on antitrust grounds. The deal was scrapped in 2022 amid additional pressure from European and Asian regulators.
Qualcomm representatives did not immediately respond to a request for comment. Intel declined to comment.
