Thought Leadership
Qualcomm has shown interest in acquiring parts of Intel’s design business to expand its own product offering, according to Reuters. The smartphone chipmaker has been looking at various Intel divisions as the company plans to shed units and sell assets due to financial constraints.
Focus on PC design
Intel’s PC design division in particular is the focus of Qualcomm, as other business areas, such as the server division, appear less suitable. So far, however, there have been no official talks between the companies. An Intel spokesperson emphasized that the company continues to invest heavily in its PC business, while Qualcomm had no comment.
Unclear plans for the future
Qualcomm, whose chips are used in smartphones worldwide and counts Apple among its customers, has been planning a possible takeover of Intel business units for months. However, the considerations have not yet been finalized and could change
Intel’s challenges
Intel recorded heavy losses in the last quarter, including a 15% reduction in jobs and the suspension of dividends. Sales in the PC business fell by 8% last year to 29.3 billion US dollars. Intel hopes that new AI-enabled PCs could boost sales again. Intel recently presented the new “Lunar Lake” chip, which was specially developed for AI applications. Parts of this chip were manufactured by Taiwan Semiconductor Manufacturing Co., which represents a departure from Intel’s traditional in-house manufacturing.
Board meeting imminent
Intel’s board of directors will discuss cost-cutting measures next week. One of the options is the sale of the programmable chip division Altera.
