Bandung, IndonesiaSentinel.com — Qualcomm has explored the possibility to takeover part of Intel chip business, according to sources cited by The Wall Street Journal. This potential acquisition could mark one of the most significant deals in the global tech industry in recent years, as Intel’s market value stands at approximately $90 billion.
If the deal materializes, it is expected to attract significant scrutiny from regulators across major markets, including the U.S., China, and Europe, due to concerns over market monopoly. A merger of these two semiconductor giants would create a powerhouse in the chip industry, dominating markets for smartphones, PCs, and servers.
“The rumored deal between Qualcomm and Intel is intriguing on many levels. From a purely product perspective, it makes sense, as they have several complementary product lines,” said Bob O’Donnell, founder of TECHnalysis Research, as reported by Reuters on Tuesday (Sept 24, 2024).
Intel, once the world’s largest semiconductor company by market value, has recently faced challenges from competitors such as Qualcomm, Broadcom, Texas Instruments, and AMD. In August, Intel announced significant cutbacks, a strategic overhaul, and a reduction of its workforce by over 15% after reporting a $1.6 billion loss. Its stock has also dropped nearly 60% since the start of the year.
On the other hand, Qualcomm has solidified its position as a leader in the smartphone processor and mobile modem markets, supplying chips to major brands, including Apple’s iPhone. Unlike Intel, Qualcomm does not manufacture its own chips, relying on companies like Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung for production.
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At this point, there is no official confirmation regarding Qualcomm potential takeover of Intel. Neither company has issued public statements about the rumored deal. However, if the acquisition goes through, it would rank as one of the largest business takeovers in tech history—surpassing even the failed $142 billion acquisition attempt of Qualcomm by Broadcom in 2018.
As the industry awaits further developments, a Qualcomm-Intel merger could reshape the semiconductor landscape, intensifying competition while raising critical regulatory questions regarding market dominance.
(Raidi/Agung)
