According to The Wall Street Journal, Qualcomm has approached Intel about a potential takeover. While the deal is still “far from certain,” it signals a significant moment for both companies. For Qualcomm, acquiring Intel would mark a bold expansion from its dominance in mobile processors into the broader chip market. At the same time, Intel would reflect on its recent struggles as it faces mounting financial and operational challenges.
Intel has been grappling with declining market share, a reported $1.6 billion loss, and layoffs of over 10,000 employees. The company has also faced production issues, forcing it to rely on external manufacturers like TSMC, and it has struggled to keep pace with recent innovations in mobile and desktop processors from companies like Apple, AMD, and Qualcomm.
Qualcomm has been gaining ground, particularly after reentering the PC market with its Snapdragon X processor earlier this year. A close partnership with Microsoft and the launch of AI-driven PCs has positioned Qualcomm as a strong contender in the desktop space, traditionally dominated by Intel.
However, any potential takeover would face significant regulatory hurdles. As seen with NVIDIA’s failed attempt to acquire Arm in 2020, such a deal would likely attract antitrust scrutiny from global regulators. There’s also speculation that Qualcomm might sell off parts of Intel to ease regulatory concerns and make the deal more feasible.
If successful, the acquisition could completely alter the competitive landscape of the chip industry, giving Qualcomm a massive edge in both mobile and desktop markets while potentially eliminating one of its largest competitors in the process. The tech world is watching closely to see whether this ambitious move will come true.
