Qualcomm is reportedly looking to acquire some of Intel's chip design business in an attempt to bolster competition and improve its own product portfolio.
Intel's financial situation is completely a mess right now, with the firm looking towards options in order to get out of this turmoil, and one way to do so is by selling existing assets, whether it is the company's divisions or even production facilities. The whole fiasco, which was initially ignited by Intel's 14th Gen & 13th Gen CPU instability issues, has now turned into the company's "worst financial period" in 56 years of history, and getting out of it right now will take a lot of work done.
Reuters reports that Intel's competition, Qualcomm, is looking towards acquiring Intel's chip design business, as the division has apparently impressed Qualcomm's executives. Specifically, Qualcomm wants to make a statement in the client PC business, which is why they feel like having Intel's resources onboard will boost the firm's entry into the market. However, it is said that Qualcomm hasn't approached Intel formally, and right now, this is only a rumor but an interesting one.
Intel has stated its commitment towards the client PC segment, claiming that the firm will continue to run and thrive. Hence, the selling of a key sector of its business won't be the right move here. However, Qualcomm has been making huge strides in the Windows PC markets recently, especially in the mobile segment through its Snapdragon X Elite SKUs, as the company managed to bag in $35.82 billion in overall revenue last year and is set to generate even higher once the AI PC hype starts kicking in the markets.
Team Blue is trying every way to generate cash flow, and immediate measures include the sale of its FPGA unit Altera, along with halting the development of Intel's $30 billion German facility. Apart from this, the firm is said to be in contact with the Biden government to get an incentive through the CHIPS Act, with the demanded amount reaching up to $8.5 billion in grants and $11 billion in loans, according to Bloomberg. Hence, it won't be wrong to say that Intel is in a pile of mess here.
We are likely going to see some shocking decisions being taken by Intel in the coming week, notably after the board meeting, where it is said that the company will reveal plans on how to limit its spending and generate capital.