Qualcomm’s plans to buy Intel have recently changed, as the company has decided to step away from the idea of a full acquisition. According to a Bloomberg news report, this move comes after Qualcomm realised that buying Intel would be more complicated than expected, with many challenges in the way.
Intel, which is one of the largest chipmakers in the world, has been facing some tough times, including a disappointing earnings report and a major reduction in its workforce. The company is working on restructuring itself to stay competitive, but it’s still struggling to keep up with rivals like Nvidia.
Qualcomm first showed interest in buying Intel after Intel posted weak financial results, but the deal would have been very difficult to complete. For one, Intel has over $50 billion in debt, which Qualcomm would have had to take on. In addition, the acquisition would have likely faced a long and tough review from regulators, especially in countries like China, where both companies do a lot of business.
Qualcomm also would have had to take on Intel’s semiconductor manufacturing business, which is not something Qualcomm is experienced with. The company has been focusing on new markets, such as personal computers, automotive chips, and networking, to grow its business by an additional $22 billion by 2029. Qualcomm’s CEO, Cristiano Amon, has said that the company doesn’t need to make a huge acquisition right now to achieve its goals.
Though the full acquisition of Intel seems unlikely for now, Qualcomm may still explore other ways to work with or buy parts of Intel’s business in the future.
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