[News] Qualcomm Rumored to Consider Acquiring Parts of Intel’s Chip Design Business, with a Focus on PC Segment

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Amid crisis and various rumors, Intel might be finding a buyer for parts of its chip business? Citing sources familiar with the matter, the latest report by Reuters suggests that U.S. chip giant Qualcomm, which is known for its Snapdragon processors used in smartphones, has investigated the possibility of acquiring parts of Intel’s design business to enhance its product portfolio.

Ahead of Intel’s board meeting next week, in which a proposal from CEO Pat Gelsinger and other executives regarding operational cuts will be reviewed, Qualcomm is said to be mulling on acquiring various segments of Intel. However, the potential target is not its FPGA unit Altera.

Instead, Qualcomm is particularly interested in Intel’s PC business, according to Reuters, though the mobile chipmaker is evaluating all of the company’s design units. The report indicates that acquiring other segments of Intel, such as the server division, would be less practical for Qualcomm.

Qualcomm, valued at USD 184 billion and known for its smartphone chips with Apple as a key customer, has been developing plans to acquire parts of Intel for several months, Reuters suggests. However, sources indicate that Qualcomm’s interest and plans are not yet finalized and could still be subject to change.

It is worth noting that earlier this week, Intel introduced Lunar Lake, which will power more than 80 new laptop designs across more than 20 original equipment manufacturers. With its boost, Intel targets to ship more than 40 million AI PC processors this year.

Almost in the meantime, on September 4^th, Qualcomm launched its latest AI PC chip, the Snapdragon X Plus 8-core processor, with the intention to counter Intel and AMD.

Qualcomm declined to comment. Intel, on the other hand, stated that there have been no discussions with Qualcomm regarding a potential acquisition, emphasizing that Intel remains “deeply committed to our PC business,” according to Reuters.

On the other hand, getting stuck in its current situation, Intel is said to be pushing U.S. officials to expedite the release of funding, another report by Bloomberg notes. Earlier in April, Intel and Biden administration announced up to USD 8.5 billion in direct funding under the CHIPS Act.

The Silicon Valley company is slated to receive USD 8.5 billion in grants and USD 11 billion in loans under the 2022 Chips and Science Act, but this funding is contingent on meeting key milestones and undergoing extensive due diligence, according to Bloomberg. Therefore, like other potential beneficiaries, Intel has not yet received any money.

More importantly, the report indicates that if Intel lowers the scale of the investment in the U.S., its subsidy package would very likely change as well. Intel CFO David Zinsner reportedly acknowledged that it is unlikely that Intel will receive subsidies before year-end.

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(Photo credit: Qualcomm)