Qualcomm is reportedly rethinking its potential acquisition of struggling semiconductor rival Intel due to numerous obstacles associated with such a deal. According to Bloomberg, citing insider sources on November 26, 2024, the American chipmaker’s interest in pursuing the acquisition has diminished.
Strategic Shift: Partial Acquisition Considered
The possibility of acquiring specific business units from Intel is now under discussion. A complete takeover, measured by Intel’s market value, would have been one of the largest acquisitions in history. Both companies declined to comment on the matter, Bloomberg reported.
Major Hurdles in the Deal
The proposed transaction faces significant financial, regulatory, and operational challenges. Qualcomm would inherit Intel’s substantial debt of over $50 billion. Additionally, the deal would likely trigger prolonged antitrust reviews in key markets such as China, a critical region for both companies.
Intel’s Struggles and Workforce Reductions
Intel, once a leader in the semiconductor industry, is currently grappling with severe financial losses. The company recently reported a disappointing quarterly earnings forecast, prompting Qualcomm’s initial interest in exploring an acquisition. In response to its declining performance, Intel announced plans to reduce its workforce by 15 percent as part of its restructuring strategy.
The future of any potential deal remains uncertain as Qualcomm evaluates its next steps in light of these challenges.