Qualcomm has explored the potential for buying parts of Intel’s design enterprise to spice up the corporate’s product portfolio, based on two sources conversant in the matter.
The cellular chipmaker has examined buying completely different items of Intel, which is struggling to generate money and trying to shed enterprise models and dump different property, the folks mentioned.
Intel’s shopper PC design enterprise is of great curiosity to Qualcomm executives, one of many sources mentioned, however they’re all the firm’s design models.
Different items of Intel such because the server phase would make much less sense for Qualcomm to accumulate, one other supply with data of Qualcomm’s operations mentioned.
Qualcomm has not approached Intel a couple of potential acquisition and declined to touch upon its plans, an Intel spokesperson mentioned. Intel is “deeply dedicated to our PC enterprise,” the spokesperson mentioned.
Qualcomm declined to remark.
The $184 billion (roughly Rs. 15,44,218 crore) Qualcomm, which is understood for chips present in smartphones and counts Apple as a buyer, has been engaged on plans to purchase items of Intel for months. Qualcomm’s curiosity and plans haven’t been finalised and will change, based on the sources.
The 2 sources declined to be named as they weren’t authorised to debate the matter publicly.
Intel reported a disastrous second quarter final month, which included a 15 p.c discount in its employees and a pause on paying dividends. Executives are grappling with learn how to proceed to fund the corporate’s manufacturing plans and generate money.
Its PC shopper enterprise income dropped eight p.c to $29.Three billion (roughly Rs. 2,45,900 crore) final yr, amid general weak spot within the PC market.
As soon as identified for it is “Intel Inside” advertising and marketing marketing campaign, Intel’s shopper group makes laptop computer and desktop chips utilized in machines world wide. Executives have mentioned the introduction of Synthetic Intelligence (AI) PCs will drive customers to improve their computer systems and generate extra gross sales.
Qualcomm generated $35.82 billion (roughly Rs. 3,00,451 crore) in general income in its final fiscal yr.
Earlier this week Intel launched a brand new PC chip referred to as Lunar Lake that its executives mentioned provides superior efficiency for AI purposes. Taiwan Semiconductor Manufacturing Co. fabricated important parts of the chips, which Intel traditionally did in-house.
Intel’s board is about to fulfill subsequent week to weigh a proposal from Intel CEO Pat Gelsinger and different executives on learn how to trim its operations in an try to avoid wasting money. Potential choices embody a sale of its programmable chip unit, Altera, Reuters reported.
© Thomson Reuters 2024
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