Intel, once the undisputed leader in x86 processors, may soon be the target of a major acquisition by fellow chip giant Qualcomm.
The Wall Street Journal reports that Qualcomm recently approached Intel with a potential takeover offer. This comes as Intel faces ongoing struggles with declining profits, manufacturing hurdles, and shifting strategies.
Qualcomm, famous for its smartphone processors, is making strides in the desktop processor market. They’ve teamed up with Microsoft to push their AI PC strategy, shaking things up with Snapdragon X Series-powered laptops that run on Arm architecture.
While sources say a merger with Intel is ‘far from certain,’ such a deal could greatly expand Qualcomm’s footprint in the market and challenge Intel’s long-standing dominance.
Intel has been grappling with various issues, including layoffs, strategic shifts, and a spin-off of its chipmaking division. The company has also started relying more on external manufacturers like TSMC to produce its most advanced chips, marking a shift from its previous approach.
If the acquisition goes through, it could have major implications for the entire chip industry, potentially reshaping the competitive landscape and driving further consolidation. However, any deal would likely face regulatory scrutiny due to potential antitrust concerns.
Intel has declined to comment on the report, and Qualcomm has yet to respond.
