Qualcomm (QCOM) is looking to strengthen its product portfolio with Intel (NASDAQ: INTC) considered purchasing some parts of the design business.
According to the report, the portable chipmaker is valuing various segments of Intel, which is struggling with cash flow and is exploring options to divest certain business units and assets.
Reuters, citing people familiar with the matter, said Qualcomm leadership is particularly interested in Intel’s PC customer design business, but is looking at all aspects of Intel’s design. However, other areas, such as Intel’s server segment, may not be in line with Qualcomm’s strategic intentions.
An Intel spokesperson said Qualcomm had not made any formal approaches to an acquisition and declined to comment on possible plans. “Intel is deeply committed to the PC business,” the spokesperson added.
Qualcomm, a $184 billion company known for its smartphone chips and counting Apple (AAPL) as a key customer, has been quietly making plans to buy parts of Intel for months. However, according to the report, Qualcomm’s intentions are still tentative and could change.
Last month, Intel reported a blistering second-quarter report that included a 15% job cut and a pause in dividends as the company struggles to figure out how to fund its production plans while preserving cash flow.
Intel’s PC client business suffered an 8% revenue decline last year to $29.3 billion amid a broader decline in the PC market.
The company, once famous for its “Intel Inside” campaign, makes chips for laptops and desktops worldwide. Executives have expressed optimism that AI-enhanced PCs will boost consumer demand for new computers and boost sales.
Intel’s board of directors is scheduled to meet next week to consider a proposal from CEO Pat Gelsinger and other executives to streamline operations and save cash. One option being considered is to sell its programmable chip unit Altera, according to a previous Reuters report.
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