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Say it is not so: It is no secret that Intel has been going by a tough patch recently. Sensing a chance, Qualcomm has been eyeing Intel’s design items with nice curiosity. It’s reportedly exploring buying Workforce Blue’s PC design division.
Nameless sources accustomed to the matter advised Reuters that Qualcomm executives have been examining Intel’s numerous design items for months to find out whether or not any would match their product portfolio. Some segments are extra engaging than others for the mobile-first agency. Whereas the mainline PC shopper design enterprise is the true prize, others, like server chips, are much less engaging.
It is value noting that Qualcomm hasn’t begun any negotiations with Intel a couple of potential acquisition but. An Intel spokesperson additionally clarified to Reuters that the corporate is “deeply dedicated” to its PC enterprise, which could throw a wrench in Qualcomm’s plans.
Nonetheless, the mere proven fact that Qualcomm is contemplating this transfer is fascinating. The corporate possible has the funds to tug it off, too. Qualcomm’s value is almost twice that of Intel, boasting a market cap of $184 billion. In the meantime, Workforce Blue’s worth has shrunk to lower than $100 billion.
Buying elements of Intel’s design enterprise might be a approach for Qualcomm to diversify its product lineup and achieve a foothold in new markets. The corporate is already making inroads into the laptop computer market with its X Elite chips, promising far better energy effectivity than x86-based choices. If any deal of this type goes by, it may assist Qualcomm soften competitors whereas bolstering its expertise. In fact, the entire state of affairs remains to be within the exploratory section, so we’ll have to attend for official affirmation.
Within the meantime, Intel is facing some vital challenges. The corporate reported a disastrous second quarter, following which its shares tumbled 26 % in a single day, wiping out $30 billion in worth. The corporate additionally plans to lay off 15 % of its international workforce as a part of an effort to cut back working bills.
Intel’s executives are scrambling to determine how you can maintain the corporate’s manufacturing plans afloat and generate some much-needed money. Choices like selling elements of the enterprise, together with its programmable chip division Altera, are on the desk. So, Qualcomm’s acquisition prospects are there if it decides to make a transfer.
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