Qualcomm plans to acquire Intel

 Qualcomm, the American multinational corporation that creates semiconductors, software, and services related to wireless technology is planning to acquire Intel, the American multinational corporation and technology company that designs, manufactures, and sells computer components and related products for business and consumer markets.

Qualcomm wants to acquire Intel, but the deal faces significant challenges

Sources revealed that Cristiano Amon, CEO of Qualcomm, is involved in recent negotiations to acquire Intel, the 50 year old company. Amon is currently exploring various options to make the deal work.

According to Reuters, Qualcomm explored possible ways to acquire Intel’s design business earlier this month. It is worth noting that negotiations are still ongoing with Intel, as Qualcomm has not proposed a final deal yet.

Intel struggling

Intel failed to develop a new artificial intelligence chip, allowing Nvidia to capitalize on the opportunity. The company lost its manufacturing advantages to its Taiwanese rival, TSMC.

^{Reuters was unable to determine how Qualcomm would financially acquire Intel as its market value is currently $188 billion. (Shutterstock)}

Sources said Intel is struggling hard to gain its foothold in the market by focusing on AI processors and creating a chip contract manufacturing business, known as a foundry.

It is worth mentioning that Pat Gelsinger, CEO of Intel, created a plan to restructure the company and suspend factories construction in Poland and Germany to reduce real estate holdings.

Intel and Qualcomm

Experts said that the deal will be subject to certain auditing procedures by antitrust regulators in the United States, China, and Europe. Qualcomm might be required to divest some sections of Intel to obtain the necessary approvals.

Reuters was unable to determine how Qualcomm would financially acquire Intel as its market value is currently $188 billion, while Intel’s market value is almost $122 billion, including its debt.

It is worth noting that Qualcomm currently owns about $13 billion in cash. Recently, Intel shares increased by 3.3%, while Qualcomm shares fell by 2.9%.