Qualcomm approached Intel about a takeover in recent days, WSJ reports
New throughout, adds background on Intel's recent challenges and steps
Sept 20 (Reuters) - QualcommQCOM.O made a takeover approach to chipmaker Intel INTC.O in recent days, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Intel's shares closed up 3.3%, while Qualcomm fell 2.9%. Qualcomm, with a market capitalization of $188 billion, is worth about twice as much as Intel.
An acquisition would put Qualcomm, known for its cell phone chips, in charge of a storied Silicon Valley business that created the guts of the modern PC but has been struggling to make the switch to chips that support AI.
Earlier this month, Reuters reported that Qualcomm explored the possibility of acquiring portions of Intel's design business and that its PC design unit was of particular interest.
Intel has been attempting to turn its business around by focusing on AI processors and creating a chip contract manufacturing business, known as a foundry.
Once the dominant force in chip-making, Intel has in recent years ceded its manufacturing edge to Taiwanese rival TSMC.TW and missed out on the generative AI boom capitalized on by Nvidia NVDA.O and AMD AMD.O. Missteps include passing on an investment in ChatGPT owner OpenAI.
Intel'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.
While Qualcomm and Intel are both major U.S. chipmakers, their business models have significant differences. Qualcomm designs chips using intellectual property licensed from Arm HoldingsO9Ty.F, and it outsources its manufacturing.
Intel mostly relies on its own architecture and it is among a minority of U.S. chipmakers that manufactures its chips in-house.
Intel declined to comment, while Qualcomm did not immediately respond to a Reuters request for comment.
A deal between Qualcomm and Intelwas far from certain, the WSJ report said, adding that even if Intel is receptive to an offer from Qualcomm, a deal of that size would attract antitrust scrutiny.
To get the deal done, Qualcomm could intend to sell assets or parts of Intel to other buyers, according to the report.
Analysts and investors have said that Intel was likely to be removed from the Dow Jones Industrial Average index .DJI.
Intel's shares have declined 56% this year, making it the worst performer on the index and leaving it with the lowest stock price on the price-weighted Dow.
Intel's foundry signed up Amazon's AMZN.O cloud services unit as a customer for making custom artificial intelligence chips, providing some respite to strained investors.
Reporting by Harshita Mary Varghese and Juveria Tabassum in Bengaluru; Editing by Shounak Dasgupta and David Gregorio
Aset Terkait
Berita Terbaru
Pengungkapan: Entitas XM Group menyediakan layanan khusus eksekusi dan akses ke Fasilitas Trading Online kami, yang memungkinkan Anda untuk melihat dan/atau menggunakan konten yang tersedia pada atau melalui situs, yang tidak untuk mengubah atau memperluas, serta tidak mengubah atau memperluas hal tersebut. Akses dan penggunaan ini selalu sesuai dengan: (i) Syarat dan Ketentuan; (ii) Peringatan Risiko; dan (iii) Pengungkapan Penuh. Oleh karena itu, konten disediakan hanya sebagai informasi umum. Anda juga harus ketahui bahwa konten Fasilitas Trading Online kami bukan sebagai ajakan atau tawaran untuk untuk melakukan transaksi apa pun di pasar finansial. Trading di pasar finansial mana pun melibatkan tingkat risiko yang signifikan pada modal Anda.
Semua materi yang diterbitkan di Fasilitas Trading Online kami hanya untuk tujuan edukasi/informasi dan tidak boleh mengandung nasihat dan rekomendasi finansial, pajak investasi atau trading, catatan harga trading kami, penawaran, permintaan, transaksi dalam instrumen finansial apa pun atau promo finansial untuk Anda yang tidak diminta.
Konten pihak ketiga apa pun, serta konten yang disiapkan oleh XM, seperti opini, berita, riset, analisis, harga, informasi lain atau link ke situs pihak ketiga yang tersedia "sebagaimana adanya", sebagai komentar pasar umum dan bukan menjadi nasihat investasi. Sejauh konten apa pun ditafsirkan sebagai penelitian investasi, Anda harus memperhatikan dan menerima bahwa konten tersebut tidak dimaksudkan dan belum disiapkan sesuai dengan persyaratan hukum yang dirancang untuk mempromosikan kemandirian riset investasi dan dengan demikian akan dianggap sebagai komunikasi pemasaran di bawah hukum dan peraturan yang relevan. Mohon dipastikan bahwa Anda telah membaca dan memahami Notifikasi pada Riset Investasi Non-Independen dan Peringatan Risiko kami mengenai informasi di atas, yang dapat diakses disini.
