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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• [News] A Quick Roundup of Intel’s Five Core Businesses: Key Moves to Watch Next
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(Photo credit: Qualcomm)

Ahead of MediaTek’s official launch of Dimensity 9400, which takes place on October 9^th, rumors have been circulating that Samsung may feature the chip in its Galaxy S25 next year. Now the first smartphone equipped with the chip has surfaced. According to the reports by Gizmochina, Wccftech and mydrivers, Vivo X200 series will reportedly be the first smartphone powered by the Dimensity 9400 chipset.

It is worth noting that Dimensity 9400 will be reportedly be manufactured with TSMC’s 3nm, according to Wccftech. This will also mark the first 3nm chip in the Android ecosystem, mydriver notes.

For more details, Vivo is anticipated to unveil the Vivo X200 series on October 14th, which includes the Vivo X200, Vivo X200 Pro Mini, and Vivo X200 Pro. According to Gizmochina, all the models will be powered by Dimensity 9400.

Dimensity 9400, by introducing the Arm Cortex-X925 super-large core, is said to offer a 36% performance increase and a 41% improvement in AI performance if compared to Cortex-X4, Gizmochina notes.

While MediaTek’s Dimensity 9400 is said to excel in performance, there have been rumors suggesting that the unit price of the SoC has increased by 20%, which could force smartphone manufacturers to adjust the prices of their flagship models, Wccftech notes.

However, as the start price of X200, which is the base model of Vivo’s latest lineup, has been revealed to be 3,999 Yuan (around USD 570) per unit, the aforementioned concern has been eased, Wccftech indicates.

Recent reports indicate that MediaTek’s Dimensity 9400 is priced 20% lower than Qualcomm’s upcoming Snapdragon 8 Gen 4, which enhance the likelihood for Samsung to adopt the chip in its upcoming S25 to reduce the cost.

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(Photo credit: Vivo)

The wild journey of Intel has yet to end, as tech giants have been approaching the company for potential acquisitions. In addition to Qualcomm, UK-based Arm is also said to inquire the possibility of acquiring the struggling chipmaker’s product division, according to the latest report by Bloomberg.

However, the report notes that Arm was informed by Intel that the division is not for sale, according to a source familiar with the situation.

Around mid-September, Intel settled down plans for restructuring after the board meeting, and revealed schemes to transform its foundry business into an independent unit with its own board. The strategy will allow its foundry business to explore independent sources of funding.

In April, Intel disclosed the financials for the foundry business for the first time, with an operating loss of USD 7 billion in 2023, a previous report by CNBC stated.

Arm, according to Bloomberg, showed little interest in Intel’s manufacturing operations. Instead, it reportedly expressed the intention to acquire Intel’s product division, which sells chips for PCs, servers, and networking equipment, though the request was turned down afterwards.

The move did make sense. With an 88% stake owned by SoftBank, Arm generates a significant portion of its revenue from selling chip designs to smartphone-related clients, including Qualcomm, Samsung and Amazon.

According to Bloomberg, Arm CEO Rene Haas targets to gain a foothold in various applications, such as personal computers and servers, in which Intel still takes a lead. A report by Reuters in June notes that Haas aims to capture 50% of PC market in five years.

If the company were to partner with Intel, it would reportedly enhance its market reach, while accelerate the shift toward selling more of its own products, Bloomberg observes.

Unlike Intel, which remains a bystander in the AI boom, Arm is considered to be a main beneficiary of the wave. After being acquired by Japan’s SoftBank in 2016 in a USD 32 billion deal, it went public in September, 2023, on Nasdaq, with a market valuation around USD 54 billion. A year after, its stock price has nearly tripled, with a market value exceeding USD 150 billion.

Representatives for both Arm and Intel declined to comment, Bloomberg notes.

On the other hand, another report by Financial Times, cited by MoneyDJ, reveals that Intel and the U.S. government are on track to finalize the USD 8.5 billion subsidy in direct funding under the CHIPS Act by the end of this year.

According to the reports, the two parties are working to complete the technical negotiations that have been ongoing for several months, while Intel is also undertaking large-scale cost-cutting measures. An insider familiar with Intel indicated that it wouldn’t be surprising if the negotiation results were announced around the upcoming presidential election.

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• [News] A Quick Roundup of Intel’s Five Core Businesses: Key Moves to Watch Next
• [News] Update on Potential Investors of Intel: Apollo Rumored in; Broadcom Temporarily out

(Photo credit: ARM)

Rumors are going around the market about Intel’s next move, as names of big techs, such as Qualcomm, have been brought up as potential buyers. On the other hand, U.S.-based asset management firm Apollo is also said to be showing interest in making an equity-like investment worth up to USD 5 billion in Intel.

However, are the rumors making sense? What would be the wisest decision for Intel to make? Here’s a roundup of the semiconductor giant’s core businesses, and a quick analysis of its next steps.

Intel Might Be Working on Restructuring and Adjustments Months ago

Before Intel’s formal announcement of delaying its German project for two years, the company has actually been carrying out plans for restructuring discreetly and adjusting its strategy in the meantime, which can date back to months ago.

This could be further echoed with Intel’s decision in June to sell a 49% equity interest related to the Fab 34 in Ireland to Apollo. Then, in July, after reporting a loss of USD 7 billion in its manufacturing business for 2023, Intel stated that its investment in France and Italy could not be realized for the time being, and suspended relevant investment plans for chip plants and R&D centers.

Five Core Businesses to Watch: x86 Unlikely to be Sold

Still, the struggling giant has five core businesses, which consists of the following segments: x86 CPUs for the consumer and data center markets, the networking business, Intel Foundry Services (IFS), FPGA unit Altera and Mobileye for automotive driver-assist systems.

Among these, x86 CPU remains the most profitable segment, which is also Intel’s core strength. As the revenue contribution, gross margin, and operating margin of the product line stay healthy, Intel is unlikely to sell the segment in the current scenario.

On the other hand, though Intel has denied the plan to divest a majority stake in Mobileye last week, the self-driving company, which listed on Nasdaq in 2022, would be one of the easiest target for Intel to handle. Industry insiders believe that companies like Japanese semiconductor firm Renesas, U.S. chip giant Qualcomm, Taiwan-based MediaTek, or those aiming to enter the automotive electronics sector could be potential buyers.

As for Altera’s FPGA unit, which also previously denied rumors of being for sale, industry experts suggest that AMD could still be a potential buyer. Acquiring Altera would allow the U.S. chip giant to expand its FPGA product lineup, effectively integrating it with its existing portfolio.

In addition, the networking division could also be sold as a standalone entity, which might be easier for Intel to execute.

What is Qualcomm Eyeing for?                       

The latest reports by The Wall Street Journal and Bloomberg indicate that Qualcomm has reached out to Intel regarding a potential acquisition offer, which would rank as one of the largest-ever technology mergers if the deal were to take place.

However, if Qualcomm were to pursue the x86 business or the entire Intel, it would be a significant financial burden for the U.S. chip maker. Moreover, as a chip design company, Qualcomm would lack the expertise to manage the IFS foundry, while the sector still suffered from significant losses.

Additionally, the deal would require scrutiny from antitrust authorities in various countries, which could be particularly challenging in China.

Therefore, a more feasible option for Qualcomm would be to acquire Mobileye, as the company is already involved in automotive ADAS and infotainment ICs. Acquiring the networking division would be another reasonable choice.

What would be the next page for Intel? To sum up, the 56-year-old semiconductor giant still has solid products, such as the x86 CPUs. Its main issue lies in the slightly deviated strategic direction and execution over the past few years, particularly as it positions itself to compete with TSMC in the most advanced nodes. By addressing these missteps and making proper arrangements afterwards, the company still holds significant value.

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• [News] Update on Potential Investors of Intel: Apollo Rumored in; Broadcom Temporarily out

(Photo credit: Intel)

As Qualcomm reportedly eyes a potential acquisition of Intel, the chipmaker is once again making headlines for its upcoming round of layoffs.

According to TechCrunch, Qualcomm will cut 226 jobs in San Diego later this year, as revealed by a California WARN notice. The layoffs, set to take effect the week of November 12, will impact 16 facilities across the city, including its headquarters. It remains unclear which specific divisions will be affected.

The latest job cuts come less than a year after Qualcomm reduced its workforce by over 1,250 employees, despite reporting $35.8 billion in annual revenue in 2023. These layoffs reflect the company’s ongoing efforts to realign its resources amid a strategic shift, focusing on maximizing opportunities in diversified markets.

According to Wccftech, Qualcomm has made notable progress in the laptop market, with its ARM-based Snapdragon X Elite SoCs gaining popularity among manufacturers. CEO Cristiano Amon has revealed that the company is developing more “affordable” laptop models, with prices potentially starting at $700, in an effort to capture a larger market share.

Beyond Qualcomm’s focus on AI-powered PCs this year, the spotlight has shifted to reports that the company has approached Intel Corp. to explore a potential acquisition of the struggling chipmaker. According to sources cited by Bloomberg, this move could result in one of the largest mergers and acquisitions in tech history.

(Photo credit: Qualcomm)