Qualcomm reportedly explores buying portions of Intel's PC client business
Qualcomm could be Intel's way out of its financial problems.
Qualcomm is allegedly exploring the possibility of taking over parts of Intel's design business, particularly the PC client segment, to expand its product offerings, reports Reuters, citing two sources familiar with the matter. While no formal discussions have occurred, the report says that Intel is considering selling off business units due to financial challenges, including a decline in its PC division's performance.
Qualcomm has long eyed the PC business with its Snapdragon processors, but its attempts with always-connected PCs in 2017 – 2020 were unsuccessful. With its Snapdragon X processors, which feature general-purpose cores originally designed by Nuvia (by ex-Apple engineers), the company finally won dozens of design wins. On paper, Qualcomm is a promising contender for the rather colossal PC market.
However, this is not enough for the company as it explores the buyout of Intel's client PC design division, which develops chips for laptops and desktops. This unit has caught Qualcomm's attention as Intel faces difficulties maintaining its cash flow and shedding assets. However, according to Reuters, Qualcomm is less interested in other Intel divisions, such as its server segment, which it sees as less aligned with its business goals. Acquiring a third-party client PC business would align with the company's focus on consumer applications, as Qualcomm is currently the No. 1 supplier of smartphone application processors.
According to an Intel spokesperson, Qualcomm has not approached Intel for a formal deal. When approached by Reuters, the spokesperson reiterated the company's commitment to its PC business. It is unsurprising, as Intel's PC unit earned the company $7.4 billion in revenue (up 9% year-over-year) and $2.4 billion in operating income in the second quarter alone. While the PC market is shrinking, it is hard to believe that Intel could dispose of its highly profitable client PC unit soon.
The report claims Qualcomm has worked on potential acquisition plans for several months. The company's interest in Intel's design business is still in the exploratory phase, with no final decisions or actual proposals made. Sources of the matter note that these plans could evolve or change entirely.
According to Reuters, Intel's board is set to review further cost-cutting options, including potentially selling its FPGA unit, Altera, as part of a broader effort to save cash. Selling off Altera or part of MobileEye would align with Intel's disposal of non-core assets in recent quarters.
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Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
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Flemkopf What's happening at Intel? I knew they've been struggling to get new processes up and running since 14nm and 10nm (Tick, Tock, Sproing, Thunk, Stomp, ARGH!!), but this is something else. They were generally running over a $70 billion a year revenue until Q2 '22 when it all went to pot. Now they're closer to $55 billion and cancelling projects left and right. Serious, I didn't call Intel falling apart like this.Reply -
Marlin1975 Flemkopf said:What's happening at Intel? I knew they've been struggling to get new processes up and running since 14nm and 10nm (Tick, Tock, Sproing, Thunk, Stomp, ARGH!!), but this is something else. They were generally running over a $70 billion a year revenue until Q2 '22 when it all went to pot. Now they're closer to $55 billion and cancelling projects left and right. Serious, I didn't call Intel falling apart like this.
Intel comes off like a gambling addict. They are just sure the next set of numbers will go their way. So they keep rosy appearances up while the place is on fire. Either that or the upper level executives are being lied to, or lying to us, about what's really going on.
I see their stock dropping more and maybe more fire sales and layoffs, esp if 18a is as bad as other outside firms are saying it is.