[News] Qualcomm Rumored to Decide Its Next Move Regarding Potential Intel Acquisition after US Election

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In September, Qualcomm was rumored to be investigating the possibility of acquiring parts of Intel’s design business to enhance its product portfolio, as it is reportedly interested in Intel’s PC business. Now a latest report by Bloomberg indicates that the smartphone chip giant might wait until after the US presidential election in November to make its decision.

Citing sources familiar with the situation, the report notes that Qualcomm hopes to seek greater clarity on the incoming president’s policies, as the new administration could significantly affect the antitrust environment and US-China relations.

The sources further note that Qualcomm may even choose to wait until after the new US president’s inauguration in January, 2025, to determine its next move regarding a potential Intel transaction due to the complexities involved.

The merger of the two tech giants would inevitably attract significant scrutiny from antitrust regulators globally, which includes China, as it is a crucial market for both, Bloomberg suggests. Therefore, it is understood that Qualcomm informally consulted with antitrust regulators in China to assess their position on any possible deal in September, though no response has been received, according to the report.

On the other hand, in the U.S. market, as Intel plays a central role in Washington’s strategy for revitalizing domestic chip manufacturing, political support would be essential for any potential deal, Bloomberg notes.

The report indicates that Intel is set to receive the largest share of funding from the 2022 Chips and Science Act, provided it proceeds with its factory construction plans. Qualcomm has been in discussions with US regulators and believes that an all-American merger could alleviate any concerns, according to sources familiar with the situation cited by the report.

It is also worth noting that submitting a bid after the election could provide Qualcomm with additional advantages, as it can wait until Intel to release its third-quarter earnings later this month, Bloomberg says. If Intel’s stock price continues to slide after its upcoming financial announcement, Qualcomm could benefit by getting a bargain.

According to the analysts’ projection quoted by Bloomberg, Intel is likely to suffer another net loss of over USD 1 billion this time around. The struggling chipmaking company reported a USD 1.6 billion net loss for the April to June quarter.

Representatives from Qualcomm and Intel declined to comment, and the State Administration for Market Regulation in China did not respond to requests for feedback, according to Bloomberg.

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(Photo credit: Qualcomm)