By Anirban Sen, Max A. Cherney, Milana Vinn and Mike Spector
SAN FRANCISCO/NEW YORK (Reuters) – Qualcomm (NASDAQ:) has explored the potential for buying parts of Intel (NASDAQ:)’s design enterprise to spice up the corporate’s product portfolio, in response to two sources acquainted with the matter.
The cellular chipmaker has examined buying totally different items of Intel, which is struggling to generate money and trying to shed enterprise models and unload different property, the folks mentioned.
Intel’s consumer 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 amass, one other supply with information of Qualcomm’s operations mentioned.
Qualcomm has not approached Intel a few 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 Qualcomm, which is understood for chips present in smartphones and counts Apple (NASDAQ:) as a buyer, has been engaged on plans to purchase items of Intel for months. Qualcomm’s curiosity and plans haven’t been finalized and will change, in response to the sources.
The 2 sources declined to be named as they weren’t approved to debate the matter publicly.
Intel reported a disastrous second quarter final month, which included a 15% discount in its employees and a pause on paying dividends. Executives are grappling with how one can proceed to fund the corporate’s manufacturing plans and generate money.
Its PC consumer enterprise income dropped 8% to $29.3 billion final 12 months, amid general weak point within the PC market.
As soon as identified for it is “Intel Inside” advertising and marketing marketing campaign, Intel’s consumer group makes laptop computer and desktop chips utilized in machines around the globe. Executives have mentioned the introduction of synthetic intelligence PCs will drive customers to improve their computer systems and generate extra gross sales.
Qualcomm generated $35.82 billion in general income in its final fiscal 12 months.
Earlier this week Intel launched a brand new PC chip known as Lunar Lake that its executives mentioned presents superior efficiency for AI purposes. Taiwan Semiconductor Manufacturing Co. fabricated vital parts of the chips, which Intel traditionally did in-house.
Intel’s board is ready to satisfy subsequent week to weigh a proposal from Intel CEO Pat Gelsinger and different executives on how one can trim its operations in an try to avoid wasting money. Potential choices embrace a sale of its programmable chip unit, Altera, Reuters reported.
(Max A. Cherney in San Francisco and Anirban Sin, Milana Vinn and Mike Spector in New York; Modifying by Kenneth Li)