Qualcomm Reportedly Wants to Acquire Intel A Potential Mega-Merger in Tech

TapTechNews September 21st news, The Wall Street Journal released a blog post today (September 21st), reporting that Qualcomm intends to acquire Intel Corporation and has contacted the chipmaker Intel Corporation in recent days. The report said that this deal is not a done deal, Intel has not agreed to any such proposals yet.

Affected by this news, Intel's share price closed up 3.3%, while Qualcomm fell 2.9%. Qualcomm's market capitalization is $188.1 billion (TapTechNews note: currently about 1.33 trillion yuan), about twice that of Intel ($93.1 billion).

Then CNBC reconfirmed this news from other channels again, but currently does not confirm the details of the negotiation between the two sides, nor is it clear what the conditions of the conversation are.

If this deal can be achieved, it will be one of the largest technology merger cases in history.

Intel used to be the world's largest chipmaker, but has been on a downhill path for many years, and the decline has accelerated in 2024.

In August, Intel announced a disappointing financial report, and the share price recorded the largest single-day decline in more than 50 years. Due to investors' doubts about the company's costly chip manufacturing and design plans, Intel's share price has fallen by 53% this year.

Qualcomm and Intel compete in multiple markets, including the personal computer and laptop chip market. However, unlike Intel, Qualcomm does not produce its own chips but relies on companies such as TSMC and Samsung for production.

Intel's CEO, Patrick Gelsinger, sent a memo to employees after the board meeting discussing the strategy, reaffirming the company's commitment to investing heavily in the foundry business, which could cost $100 billion in the next five years. The memo also said that the company is weighing external investments.