Qualcomm approaches Intel for potential takeover, claims report

The discussions are said to be in early stages, and the deal is "far from certain," with regulatory hurdles likely to pose significant challenges.

Intel has been struggling with increasing competition and financial difficulties in recent years.

The company recently reported a $1.6 billion loss and announced plans to cut over 10,000 jobs.

Currently valued at around $87 billion, Intel’s stock has dropped by 60 percent this year, largely due to competitive pressures, evolving technology, and possible strategic missteps.

A major blow to Intel came in 2020 when Apple, one of its biggest clients, transitioned away from Intel chips to its own M-series processors, based on ARM architecture.

This shift by Apple marked a pivotal moment in the tech industry.

Meanwhile, Qualcomm, best known for its Snapdragon processors used in many Android smartphones, has been steadily expanding into the PC market.

The company recently launched the Snapdragon X Plus and Snapdragon X Elite processors, both praised for their AI capabilities and performance.

Acquiring Intel could give Qualcomm access to important assets and technologies that would bolster its standing in the PC and server markets.

Unlike Intel, Qualcomm does not manufacture its own chips, instead relying on Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung for production.

Additionally, Intel has fallen behind in the race for AI dominance, with Nvidia leading the way in providing processors crucial to the generative AI boom.

Both Intel and Qualcomm have yet to comment on the reported acquisition talks.