DBT Bureau
Bengaluru, 22 September 2024
Chip giant Qualcomm reportedly in talks with Intel for a potential takeover of the company. A report in The Wall Street Journal said that though Qualcomm has not made any formal offer yet, the two chip giants might have explored such possibility.
Qualcomm has been dominating the mobile chip market for years. Its focus on premium smartphone market has helped the company to accelerate revenue growth. According to estimates, Qualcomm has around 40% market share in global smartphone AP market.
However, its share in the desktop processor space is low. Though the company has re-entered the desktop processor market in collaboration with Microsoft, Qualcomm can get a larger market share through Intel’s acquisition, reports said.
Meanwhile, Intel has been struggling owing to low sales growth as the company was not able to capitalise on the recent AI (artificial intelligence) boom. It reported a net loss of $1.6 billion in Q2 of 2024.
If such deal materialises, it has to overcome several policy obstacles including anti-trust regulations of the US.
