Qualcomm Reduces Interest in Acquiring Intel Corporation

According to industry experts, Qualcomm Inc has reduced its interest in acquiring Intel (NASDAQ: INTC) Corporation, which could be one of the largest technology deals in history. The complexity of purchasing Intel's entire business has diminished Qualcomm's enthusiasm for the deal. However, there remains a possibility that Qualcomm may focus on acquiring part of Intel's business or revisit its interest later on.

Qualcomm had initially engaged in preliminary discussions with Intel regarding a potential acquisition. However, Intel's disappointing earnings report, which included lackluster revenue forecasts and plans to reduce its workforce by 15%, revealed financial, regulatory, and operational challenges.

The deal would require taking on more than $50 billion in debt and undergoing extensive antitrust scrutiny, particularly in China, which is a critical market for both companies. Additionally, Qualcomm would have to manage Intel's loss-making semiconductor manufacturing division, an area in which Qualcomm lacks experience. Qualcomm aims to enter new markets, including personal computers, networks, and automotive chips, to generate an additional $22 billion in annual revenue by the fiscal year 2029. CEO Cristiano Amon recently stated that there are currently no major acquisitions planned to achieve this goal.