Qualcomm approaches Intel acquisition, aiming for dominance
Sep 22, 2024
Washington [US], September 22: Yesterday, September 21, Reuters quoted a well-informed source saying that Qualcomm recently approached Intel to consider the possibility of acquiring this struggling corporation.
Prospects for a "huge" acquisition
Qualcomm CEO Cristiano Amon is personally involved in the negotiations to acquire Intel and is considering various options for the deal. Earlier in September, several sources revealed that Qualcomm was evaluating the possibility of acquiring Intel's design division.
Neither Intel nor Qualcomm responded to Reuters' report. Qualcomm shares fell 2.9% after the report was published, while Intel shares rose 3.3%.
Intel is currently in a difficult situation with poor business results. The reason is said to be because the corporation cannot keep up with its competitors in the race for advanced semiconductor chips, especially semiconductor chips that meet the explosive development of artificial intelligence (AI).
Meanwhile, failing to keep up with its rivals in advanced semiconductor chips has forced Intel to increase its investment in new manufacturing systems to provide advanced chips to increase its competitiveness. The company has even expanded its foundry business to accept chip foundries for other companies in the industry. This has increased investment costs while revenue has declined, making the situation more difficult. These reasons have led to recent losses and Intel has had to carry out a plan to cut 15,000 employees.
Since the beginning of the year, Intel's stock price has fallen nearly 60%, from approximately $50/share to about $21/share. However, Intel's current market value is still approximately $100 billion, while Qualcomm's is currently valued at about $188 billion. Therefore, if Qualcomm successfully acquires Intel, it will become a "giant" company in the semiconductor industry.
Source: Thanh Nien Newspaper
