Qualcomm eyes Intel’s chip design business

Semiconductor and service specialist Qualcoom is reportedly exploring the acquisition of certain segments of Intel’s design business, according to a Reuters report.

Sources close to the matter told the news agency that the mobile chip giant is interested in bolstering its product portfolio, with a focus on Intel’s client PC design operations, as it seeks to expand its technological offer.

They added that Qualcomm, which generated $35.82 billion in overall revenue in its last fiscal year, has not yet finalised any plans, and its current interests may change.

An Intel spokesperson confirmed that Qualcomm has not formally approached the company and emphasised Intel’s commitment to its PC business.

In August, the chip giant shares plummeted10.5 per cent, with the chipmaker announcing it would cut 15 per cent of its 110,000-strong workforce as it looks to streamline its operations and “meaningfully cut spending and headcount.”

Intel’s PC client business saw an 8 per cent revenue decline to $29.3 billion last year, reflecting an overall decline in the PC market. In an effort to revitalise the arm, Intel has recently introduced a new PC chip, Lunar Lake, that aims to provide enhanced performance for AI applications.

Intel has been facing difficulties and rumours say the firm is looking to shed business units and sell assets to stabilise its cash flow, Reuters reported earlier this week.

The news agency added that the company’s board is scheduled to meet next week to review proposals from chief executive Pat Gelsinger and other executives with potential strategies to access liquidity including the sale of Intel’s programmable chip unit Altera.