Qualcomm is ready to pounce on every oppeortunty coming their way and right now it appears that they have set their eyes on the struggling Intel. The San Diego-based chipmaker was reportedly interested in taking over Intel in recent days," according to a new report in The Wall Street Journal.
The WSJ has cautioned everyone that a deal is "far from certain," but if it pushes through it would be considered a major upheaval in the US chip industry. It could also raise antitrust questions. Fespite these concerns, Qualcomm’s reported interest in a takeover underscores just how much Intel’s business has struggled over the last year.
Intel announced plans to cut 15,000 jobs last month as its quarterly losses climbed to US$ 1.6 billion. Its foundry business is also struggling, with an operating loss of US$ 2.8 billion last quarter. CEO Pat Gelsinger announced plans earlier this week to separate its foundry business into a separate unit from the rest of Intel.
Qualcomm has also felt the economic downturn as it laid off 226 workers in San Diego later this year. The layoffs affected employees at 16 facilities across San Diego, including the company's headquarters, which has a cybersecurity presence. It's unclear if the cybersecurity team is affected, and a Qualcomm spokesperson declined to say when asked by TechCrunch.
In a statement, Qualcomm spokesperson Kristin Stiles said: "Our leading technology and product portfolio has positioned us to execute on our diversification strategy. As part of a normal course of business, we prioritize and align our investments, resources, and talent to ensure we are optimally positioned to take advantage of the unprecedented diversification opportunities in front of us."
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