Qualcomm in talks to buy Intel: media

An insider familiar with the situation claims that Qualcomm CEO Christiano Amon is personally involved in negotiations to acquire Intel.

The agency’s source also believes that this deal could transform the entire chip manufacturing sector, but there are many obstacles in its way.

One of them is the close scrutiny of antitrust authorities in the United States, China and Europe. Qualcomm may have to give up part of Intel to obtain regulatory approval.

However, the corporation itself initially considered acquiring not the entire Intel business, but only some divisions. The negotiations are at an early stage and are confidential.

Intel declined to comment when contacted by Reuters. Qualcomm simply did not respond. Intel shares rose 3.3% on the news, while Qualcomm fell 2.9%.

Qualcomm has chosen the right time for its proposal: after having lost the competition with Nvidia, Intel is now struggling. The once most powerful chipmaker in the world has lost almost 60% of its share value since the beginning of the year.

The deal would be the biggest acquisition in the tech industry since Broadcom tried to buy Qualcomm for $142 billion in 2018.

Reuters analysts were at a loss to understand how Qualcomm, which has a market value of $188 billion, would finance the purchase of Intel, which is valued at $122 billion including debt.

The company’s motives are clear: Qualcomm has never had its own chip manufacturing plant and currently has contracts with companies such as Taiwan Semiconductor Manufacturing and Arm Holdings.