The Wall Street Journal reported Friday that San Diego-based wireless giant Qualcomm has approached Intel about a possible takeover of the ailing chip maker.
Acquisition of the Silicon Valley company that pioneered memory chips and microprocessors would be valued at nearly $90 billion. Qualcomm has a market capitalization of $188 billion, about twice as much as Intel.
The Journal said Qualcomm had approached Intel “in recent days” but a deal is by no means certain.
Reuters reported that Qualcomm CEO Cristiano Amon is personally involved in the negotiations, citing a sources familiar with the situation.
Acquiring Intel would give Qualcomm production lines in the United States for its world-leading wireless chips like the Snapdragon.
It would be the biggest takeover attempt in the technology industry since Broadcom sought to buy Qualcomm for $142 billion in 2018, before then President Trump stopped the deal, citing national security concerns.
Intel, once the world’s most valuable semiconductor company, has been suffering from a series of sales and management crises.
The company’s stock has slumped 25% since Aug. 1, when it said it would cut over 15% of its workforce and suspend its dividend as it pursues a turnaround.
Intel’s shares closed up 3.3%, while Qualcomm fell 2.9%.
Updated at 8:10 a.m., Saturday, Sept. 21, 2024
