Qualcomm is reportedly interested in acquiring certain segments of Intel's chip design business, specifically its client PC design unit, as a way to enhance its product offerings. However, no formal acquisition proposal has been made, according to an Intel spokesperson. Intel has been facing financial difficulties, including a second-quarter loss and staff reductions, but remains committed to its PC business.
The company plans to present a strategic review to its board, which may involve divesting non-core units like its programmable chip unit, Altera. Qualcomm, known for its smartphone chips and valued at $184 billion, has been contemplating this acquisition for several months, yet no concrete plans are in place. This interest comes amid a decline in Intel's PC client revenue, which fell 8% to $29.3 billion last year, reflecting broader market weaknesses.
Intel executives believe that advancements in artificial intelligence will eventually boost consumer demand for their products. Recently, Intel faced setbacks with its contract manufacturing business, notably failing tests related to its advanced manufacturing process, 18A, which needs further development. Broadcom, which evaluated Intel's offering, is still in the process of assessing potential partnerships. Intel emphasizes its dedication to the PC segment despite ongoing challenges.
