Qualcomm has explored the possibility of acquiring parts of Intel’s design business to boost the company’s product portfolio, according to two sources familiar with the matter.
The mobile chipmaker has explored acquiring different parts of Intel, which is struggling to generate cash and is looking to spin off business units and sell other assets, the people said.
Intel’s client PC design business is of great interest to Qualcomm executives, one of the sources said, but they are considering all of the company’s design units.
Other parts of Intel, such as the server segment, would make less sense for Qualcomm, said another source with knowledge of Qualcomm’s operations.
Qualcomm has not reached out to Intel to discuss a possible acquisition and declined to comment on its plans, an Intel spokesman said. Intel is “deeply committed to our PC business,” the spokesman said.
Qualcomm declined to comment.
Qualcomm, $184 billion, best known for chips found in smartphones and which has a $1 billion portfolio. Apple As a customer, it has been working on plans for months to buy parts from Intel. Qualcomm’s interest and plans have not materialized and could change, according to the sources.
The two sources declined to be identified because they were not authorized to discuss the matter publicly.
Last month, Intel reported a disastrous second quarter, which included a 15% reduction in its workforce and a pause in dividend payments. Executives are grappling with how to continue funding the company’s manufacturing plans and generate cash.
Revenue from its PC client business fell 8% to $29.3 billion last year amid overall weakness in the PC market.
Intel’s customer group, once known for its “Intel Inside” marketing campaign, makes chips for laptops and desktops that are used in machines around the world. Executives have said the introduction of AI-powered computers will push consumers to upgrade their PCs and drive more sales.
Qualcomm generated $35.82 billion in total revenue in its last fiscal year.
Earlier this week, Intel launched a new PC chip called Lunar Lake that its executives say offers superior performance for artificial intelligence applications. Taiwan Semiconductor Manufacturing Co. made a significant portion of the chips, something Intel historically did in-house.
Intel’s board of directors will meet next week to consider a proposal from Intel Chief Executive Pat Gelsinger and other executives on how to trim its operations in an attempt to save money. Possible options include selling its programmable chip unit, Altera, Reuters reported.
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