Qualcomm has reportedly made informal overtures to acquire Intel, a move that could mark the largest tech merger in history, Axios reports.
This potential acquisition could significantly alter the landscape of the US technology sector and present a major antitrust challenge for the incoming administration.
The discussions highlight Intel’s steep decline, which was once the world’s leading chipmaker. Over the past year, Intel’s stock price has dropped by 36%, despite a slight uptick following news of Qualcomm’s interest. Currently, Intel’s market capitalization stands at approximately $93 billion, while Qualcomm is valued at around $188 billion.
The proposed merger would eclipse previous significant tech mergers, such as Microsoft’s acquisition of Activision Blizzard for $69 billion and Broadcom’s $117 billion bid for Qualcomm in 2017, which was blocked by former President Trump due to national security concerns.
Intel’s challenges have been ongoing, exacerbated by its failure to adapt to a market increasingly favoring chips produced by rivals like Nvidia, which has surged to a valuation of $2.85 trillion. Intel also benefits from funding under the CHIPS Act, which aims to bolster domestic semiconductor manufacturing.
While Qualcomm has not yet submitted a formal offer or detailed how it would finance such a substantial acquisition, questions remain regarding the strategic compatibility of the two companies. Qualcomm lacks experience in operating chip manufacturing facilities, which could complicate integration efforts.
