Sorry, there’s no way Qualcomm is buying Intel as is

Comment Qualcomm can even very well be after bigger than Intel’s PC earn industry as it has supposedly approached the x86 enormous a pair of probably takeover.

That is what unnamed sources advised the Wall Boulevard Journal for a announce published Friday. CNBC also acknowledged it heard the a linked thing: That Qualcomm contacted Intel a pair of skill takeover in fresh days.

Surprise, surprise, crucial factors referring to the alleged acquisition plans, which are curiously removed from sure, are razor skinny to claim the least. This can even very well be nothing bigger than Qualcomm making an strive to search recommendation from Intel about possibilities.

That hasn’t stopped Intel’s shares from rallying while Qualcomm’s have dipped, as the ideas met a combination of optimism and apprehension by merchants.

The Register asked Intel and Qualcomm for a response. Intel declined. Qualcomm is asserting nothing. So as a replace, we will emphasize that the logistics of any such bombshell acquisition would possibly be removed from trivial if not nigh-on not attainable.

Reality test

At the finish of its third quarter [PDF] of its fiscal 2024, the three months to June 23, Qualcomm had $7.8 billion in cash and cash equivalents at its disposal and upright over $23 billion in full assets. That suggests Qualcomm, most productive known for its mobile modems and Snapdragon mobile processors, is nearly completely having a gape at a stock-for-stock transaction. As of writing, Qualcomm’s market cap is $188 billion, upright bigger than double that of Intel’s at $93 billion.

The WSJ advised this probably takeover can even additionally consist of selling off a couple of of Intel’s assets to others to build the acquisition extra manageable. It doubtlessly would wish to for Qualcomm to belly the deal, financially and strategically talking. And even supposing Intel’s board agreed no topic offer can even emerge, getting regulatory approval – persuading the US, UK, EU, and others that gobbling up extra semiconductor market portion will seemingly be OK for opponents – can even not be its only hurdle.

With out a doubt, Chipzilla can even not be worth noteworthy to Qualcomm except it will renegotiate the x86/x86-64 heinous-licensing patent agreement between Intel and AMD, which dates lend a hand to 2009. That agreement is terminated if a alternate up to hasten happens at either Intel or AMD. There are also prior pacts between AMD and Intel.

While a different of the aforementioned patents expired in 2021, or not it’s our knowing that agreement is aloof in power and Qualcomm would possibly be topic to alternate of administration rules. In other phrases, Qualcomm wouldn’t be in a utter to earn Intel-designed x86-64 chips except AMD gave the inexperienced gentle. Furthermore it is seemingly one of many reasons why no one bought AMD when it was on the ropes; whoever took over it will probably perchance wish to tackle Intel.

• AMD sharpens silicon swords to rob on chip and AI opponents
• Qualcomm reportedly eyeing Intel’s PC earn biz and additional
• Pat Gelsinger’s distinguished idea to reinvent Intel is in jeopardy
• Intel frees its Foundry biz – and that is the reason upright one of many most most well-known shake-united statestoday

This isn’t the first time we now have hasten into rumors that Qualcomm was making an strive to strip Intel for aspects. An earlier announce by Reuters citing unnamed sources alleged Qualcomm was drawn to picking up Intel’s client PC earn industry.

The WSJ announce comes upright days after Intel CEO Pat Gelsinger announced plans to hurry off its sick foundry division as a standalone subsidiary; postpone kind of its German and Polish foundry websites; and consolidate its automobile and networking and edge (NEX) groups under its client division. All of this in a portray to staunch the tech enormous’s bleeding.

Main up to the decision, Intel has been the topic of worthy hypothesis, including reports it deliberate to totally sell off its FPGA and autonomous riding industry devices. The chipmaker has since clarified that its idea to rob Altera public hasn’t changed – or not it’s already spun off and making an strive out ahead to an IPO – and that it has no plans to quit its majority stake in Mobileye.

Intel isn’t the one tech firm whose stock has taken a roller coaster lag per whisperings. Early this month, Bloomberg cited unnamed sources in a announce claiming that the US Department of Justice had issued subpoenas to Nvidia as phase of an ongoing antitrust investigation into the GPU enormous.

Nvidia later denied the announce, asserting that while it had made contact with the US govt, it had not been subpoenaed. ®