So Qualcomm doesn’t want Intel’s whole business and may not even want part of it anymore. Which is completely understandable given Intel’s precarious state, the complexity that a deal would bring, and the overall Federal government’s attitude toward supporting Intel at the moment.
According to Bloomberg, Qualcomm has reportedly stepped back from its interest in acquiring Intel, citing the deal’s complexity and challenges. While the acquisition would have been historic in its significance and scale, Qualcomm is now exploring other ways to expand, potentially targeting parts of Intel, as reported before.
Intel’s market capitalization — currently at $102.38 billion — highlights the magnitude of the deal Qualcomm had considered. Adding a 20% premium would have made this takeover one of the biggest acquisition deals ever. If completed, it would have become the largest technology company acquisition, surpassing Broadcom’s 2023 purchase of VMware. The deal would have created one of the world’s largest high-tech companies with vast capabilities across various markets.
https://www.tomshardware.com/tech-industry/qualcomm-reportedly-loses-interest-in-intel-takeover
Yeah, I wouldn’t want Intel either.
With Intel’s debt level, falling revenue, investment requirements from the CHIPS Act and secure enclave agreements, and over reliance on the next generation node to save the entire company… there’s not as much reason to outright buy Intel as originally thought.
Qualcomm’s backup plan is probably now in force though… To feast on Intel’s corpse when the Republican Congress decides national interests don’t matter, sound bytes matter, and try to scrap the CHIPS Act accidentally killing Intel in the process.
Then the juicy parts of Intel that Qualcomm wants will most likely be up for grabs.
Intel has spent something like $30+ billion on domestic manufacturing initiatives while receiving $0 from the Federal government. It needs cash. It needs its next node to succeed. It needs foundry customers lining up out the door.
Qualcomm knows all of that. Qualcomm knows that Intel’s foundry business will probably be split up, with the foundry going one way and the design business going another, leaving those parts of Intel Qualcomm wants potentially up for grabs.
You know just the negative interaction between Intel and the Biden AND Trump Administration would send me running if I were Qualcomm. Neither Administrations are / will use the CHIPs Act to give Intel the funding it needs. Intel itself doesn’t seem to understand just how much funding it really needs. Who needs that crap?
Ultimately a Qualcomm / Intel merger would’ve been a bad deal for everyone and it’s a good thing it wasn’t pursued. Now we wait for the government to accidentally kill the major foundry company in the United States.