Qualcomm

Qualcomm to acquire Intel's design business for expansion of its product offerings

Qualcomm plans to acquire portions of Intel’s design business. This significant move was taken to expand its range of products.

The company is exploring the possibility of buying various portions of Intel, which is facing financial issues and planning to sell off the business units and other assets. 

However, Qualcomm has not made an official statement yet about the acquisition of Intel and has refused to discuss its future strategies, according to a spokesperson of Intel. 

Additionally, according to sources, Intel’s client PC design business is a key area of interest for Qualcomm executives.

Acquiring other Intel components like the server division would not be as logical for Qualcomm, according to a different source who is familiar with Qualcomm said.

Qualcomm Future Strategies

Qualcomm, recognized for its microchips in mobile devices and with Apple among its clients, has been in the process of developing strategies to acquire Intel's assets for several months.

This past week, Intel introduced a new PC chip named Lunar Lake, which its leaders claimed provides better performance for AI tasks. 

Qualcomm on Layoff of Employees

Notably, Intel reported a 15% cut in its workforce and a halt in dividend payments. In the previous fiscal year, Intel has generated an overall revenue of $35.82 billion.

According to sources, the launch of AI-powered PCs will encourage customers to replace their PCs, leading to increased sales.