Qualcomm wants to buy Intel
According to a recent report by the Wall Street Journal, Qualcomm, a leading mobile chip manufacturer, has made a takeover proposal to Intel in recent days. This comes as Intel grapples with one of the most significant challenges in its history.
Intel’s stock has plummeted by approximately 60 percent this year as it navigates a strategic transition focused on its foundry business, where it faces intense competition from Taiwan Semiconductor Manufacturing Company (TSMC), the dominant player in contract chip production.
The report notes that any agreement between the two companies remains uncertain.
Such a deal could be viewed as a boost to U.S. domestic chip production efforts, aligning with the country’s push to expand semiconductor manufacturing within its borders.
According to the report, Qualcomm would likely divest certain Intel assets or divisions to complete the acquisition, based on information from unnamed sources.
On Friday, Intel’s shares rose 3.3%, giving the company a valuation of around $93 billion (£70 billion). In contrast, Qualcomm, the leading supplier of mobile phone chips, saw its shares drop 2.9%, bringing its market value to approximately $188 billion—more than twice Intel’s current worth.
At its peak, Intel was valued at over $290 billion when it, along with Microsoft, dominated the personal computing market. However, in recent years, Intel has struggled to capitalize on emerging trends such as smartphones and, more recently, artificial intelligence (AI).
Blogger at www.systemtek.co.uk