他们补充称，According to sources cited by the media, Qualcomm's interest in acquiring Intel has cooled down; The deal, which was originally expected to be one of the largest technology M&A deals in history, may be off as a result; Sources said that the complexity of acquiring all of Intel's operations reduced the attractiveness of the deal for Qualcomm.
According to media reports citing sources, Qualcomm's interest in acquiring Intel has cooled. This deal, which was expected to be one of the largest technology mergers in history, may now be off the table.
Sources said that the complexity of acquiring all of Intel's operations reduced the attractiveness of the deal for Qualcomm.
They further added that Qualcomm may instead consider partial equity in Intel, leaving open the possibility of reigniting interest in the acquisition later on.
In early August this year, Intel's performance took a hit, not only releasing a second quarter earnings report below expectations, providing lower-than-expected guidance for the third quarter, but also announcing massive layoffs and a suspension of dividends.
In September, media reported that Qualcomm had preliminary contact with Intel for a possible acquisition. If this acquisition goes through, it would be one of the largest technology M&A deals in history. Currently, Intel's market cap is around $107 billion, while Qualcomm's market cap is about $176.4 billion.
However, this deal faces many financial, regulatory, and operational hurdles, including taking on over $50 billion of Intel's debt. Additionally, the deal may attract lengthy and formidable antitrust scrutiny, including in China. Currently, China is a critical market for both companies.
Qualcomm is currently the world's largest mobile chip supplier, but at the same time, the company has been committed to diversifying its products. The company aims to generate an additional $22 billion in revenue annually by fiscal year 2029 by entering new markets, including personal computers, networking, and automotive chips.
Despite dominating the PC chip sector, Intel lags far behind its competitors in the AI chip field. Against the backdrop of intensified global technology competition and accelerated technological advancement, Intel faces fierce challenges from chip manufacturers such as Nvidia and AMD.
Due to Intel's failure to catch up with the AI trend, its stock price has dropped by about 48% this year.
In addition, there are recent reports that Intel is negotiating with potential investors to sell its Altera programmable chip division. The company's CEO, Gelsinger, stated in a conference call with investors that he expects the process to be completed early next year.
There are also reports that Lattice Semiconductor is considering a full acquisition of Intel's Altera division. The company is working with its advisors to research potential acquisition matters and seeking support from a private equity investment firm.
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