Qualcomm Announces Plan to Fully Acquire Intel Instead of Only Certain Divisions

On September 20, 2024, the media reported that Qualcomm had announced its intention to acquire Intel, not just some of its divisions fully. The deal is preliminarily estimated at $87 billion.

Earlier it was reported that Qualcomm was interested in Intel's assets related to developing processors for the consumer market (Intel Foundry). However, it later became known that Qualcomm offered to buy the entire company, including the server division and the Altera division.

Experts believe that this deal could be a turning point for the entire big tech industry. If Intel is acquired by a competitor, it will significantly affect the whole market and change the landscape of the technology sector. Intel's final decision on the Qualcomm offer is expected shortly.

At the same time, industry experts point out that such a deal could be viewed by US regulators as a chance to strengthen the country's competitiveness in the chip manufacturing sector in the global market. To obtain approval for the deal, Qualcomm may have to sell some of Intel's assets or divisions to other interested parties.

In July, Intel recognized a problem with the unstable operation of some 13th and 14th generation desktop processors due to errors in the microcode, which caused chip degradation. The company is offering replacement or refunds to customers with affected processors.

During the year, Intel's shares lost 55% of their value, and the overall market situation created risks of the company's bankruptcy. In August, Intel reported a loss of $1.6 billion for the second quarter of 2024, while three months ago the figure was $437 million. In early August, Intel announced its intention to cut 15% of its staff (about 19 thousand employees) to save $10 billion by 2025.

In general, the company plans to cut research, development, and marketing costs by 2026, as well as reduce capital expenditures by 20%.