The cellular chipmaker has examined buying completely different items of Intel, which is struggling to generate money and trying to shed enterprise models and dump different belongings, the folks mentioned.
Intel’s consumer PC design enterprise is of great curiosity to Qualcomm executives, one of many sources mentioned, however they’re taking a look at the entire firm’s design models.
Other items of Intel such because the server section would make much less sense for Qualcomm to accumulate, one other supply with information of Qualcomm’s operations mentioned.
Qualcomm has not approached Intel a couple of 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 (roughly Rs. 15,44,218 crore) Qualcomm, which is understood for chips present in smartphones and counts Apple as a buyer, has been engaged on plans to purchase items of Intel for months. Qualcomm’s curiosity and plans haven’t been finalised and will change, in response to the sources.
The two sources declined to be named as they weren’t authorised to debate the matter publicly.
Intel reported a disastrous second quarter final month, which included a 15 p.c discount in its employees and a pause on paying dividends. Executives are grappling with learn how to proceed to fund the corporate’s manufacturing plans and generate money.
Its PC consumer enterprise income dropped eight p.c to $29.3 billion (roughly Rs. 2,45,900 crore) final 12 months, amid total weak spot within the PC market.
Once identified for it is “Intel Inside” advertising marketing campaign, Intel’s consumer group makes laptop computer and desktop chips utilized in machines around the globe. Executives have mentioned the introduction of Artificial Intelligence (AI) PCs will drive shoppers to improve their computer systems and generate extra gross sales.
Qualcomm generated $35.82 billion (roughly Rs. 3,00,451 crore) in total 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 affords superior efficiency for AI functions. Taiwan Semiconductor Manufacturing Co. fabricated important parts of the chips, which Intel traditionally did in-house.
Intel’s board is about to satisfy subsequent week to weigh a proposal from Intel CEO Pat Gelsinger and different executives on learn how to trim its operations in an try to avoid wasting money. Potential choices embody a sale of its programmable chip unit, Altera, Reuters reported.
© Thomson Reuters 2024
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