Qualcomm CEO Cristiano Amon exploring acquisition of Intel
Qualcomm has recently approached Intel to research a potential purchase of the disturbed chipmaker, a source familiar with the case said on Friday, in what could be a transformational agreement in the sector but faces many limitations.
Qualcomm CEO Cristiano Amon is reportedly personally involved in early-stage discussions to explore the acquisition of Intel, a five-decade-old technology giant.
According to a source briefed on the matter, Amon has been actively examining various strategic options related to a potential deal.
Interest in Intel’s PC Design Business
Earlier reports from Reuters revealed that Qualcomm had explored acquiring portions of Intel’s design business, with its PC design unit being of particular interest.
However, sources indicate that Qualcomm executives are examining Intel’s entire portfolio, suggesting a broader interest beyond just the PC segment. Despite the ongoing talks, no formal offer has been made, as discussions are still in the preliminary stages.
Intel’s Current Weakness
The approach comes during a period of vulnerability for Intel, which was once the world’s most valuable chipmaker. The company’s shares have lost nearly 60% of their value since the beginning of the year, making it an opportune moment for a potential acquisition.
Qualcomm, based in San Diego, is reportedly considering different strategies, but Intel has yet to comment on the situation, and Qualcomm has not responded to Reuters’ request for a statement.
Potential Antitrust Scrutiny
If Qualcomm proceeds with a bid for Intel, the deal would likely face heavy antitrust scrutiny from regulators in the United States, China, and Europe. Qualcomm may even be required to divest parts of Intel to secure regulatory approvals.
Given the scale of the deal, it would mark one of the largest takeovers in the tech industry since Broadcom’s $142 billion bid for Qualcomm in 2018, which was blocked by President Donald Trump due to national security concerns.
The outcome of these early negotiations will be closely watched, as a successful acquisition could significantly reshape the landscape of the semiconductor industry.