Reuters reported that Qualcomm CEO Cristiano Amon is “personally involved” in the Intel takeover negotiations
The story of Intel’s struggles around design/build approach to semiconductors facing headwinds is continuing to unfold, and on Friday, took an expected turn when it was reported that Qualcomm approached the chip company about a potential acquisition.
For months now, Intel has been undergoing a reorganization effort, selling off its stake in British chip firm Arm Holdings in Q2 this year and cutting more than 15% of its workforce. These moves are part of the company’s larger aim to reduce spending in traditional data center semiconductors in favor of the development of AI chips, as well as expanding its for-hire manufacturing capabilities. Then just last week, CEO Pat Gelsinger said the company is shifting its focus to its foundry business.
According to Reuters, which cited a source familiar with the matter, Qualcomm CEO Cristiano Amon is “personally involved” in the negotiations. Previously, the news outlet reported that Qualcomm was already looking into acquiring portions of Intel’s design business. The outlet also noted that any acquisition conversations with Intel are at an early stage and its sources were clear that a formal offer for Intel has not been made.
In related news, Intel’s shared surged today following a weekend report that Apollo Global Management has indicated a willingness to pump up to $5 billion into the company. In June, the entities struck a different deal in which Intel agreed to sell Apollo a 49% stake in a chip manufacturing plant located in Ireland.
A successful takeover of Intel by Qualcomm would be monumental for the industry; however — and perhaps precisely for that reason — analysts are doubtful it would ever get past regulatory hurdles.
