There’s no way Qualcomm is buying Intel as is

Comment Qualcomm is seemingly after more than Intel’s PC originate industry as it has supposedly approached the x86 massive about a that you furthermore could can take into account takeover.

That is what unnamed sources advisable the Wall Boulevard Journal for a document published Friday. CNBC also acknowledged it heard the identical thing: That Qualcomm contacted Intel about a skill takeover in most up-to-date days.

Surprise, surprise, details referring to the alleged acquisition plans, that are curiously a long way from distinct, are razor thin to claim the least. This is seemingly nothing more than Qualcomm seeking to discuss with Intel about probabilities.

That hasn’t stopped Intel’s shares from rallying whereas Qualcomm’s comprise dipped, as the news met a combine of optimism and apprehension by merchants.

The Register asked Intel and Qualcomm for a response. Intel declined. Qualcomm is asserting nothing. So instead, we will emphasize that the logistics of this kind of bombshell acquisition could maybe maybe seemingly be a long way from trivial if not nigh-on unattainable.

Fact verify

At the extinguish 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 factual over $23 billion in total assets. That methodology Qualcomm, simplest known for its cell modems and Snapdragon cell processors, is virtually indubitably taking a search for at a inventory-for-inventory transaction. As of writing, Qualcomm’s market cap is $188 billion, factual more than double that of Intel’s at $93 billion.

The WSJ suggested this that you furthermore could can take into account takeover could maybe maybe seemingly moreover comprise selling off some of Intel’s assets to others to assign the acquisition more manageable. It doubtlessly would comprise to for Qualcomm to stomach the deal, financially and strategically talking. And even supposing Intel’s board agreed whatever offer could maybe maybe seemingly emerge, getting regulatory approval – persuading the US, UK, EU, and others that gobbling up more semiconductor market section will be OK for competition – could maybe maybe seemingly not be its simplest hurdle.

Basically, Chipzilla could maybe maybe seemingly not be worth much to Qualcomm unless it’s going to renegotiate the x86/x86-64 noxious-licensing patent agreement between Intel and AMD, which dates assist to 2009. That agreement is terminated if a commerce as much as the impress happens at either Intel or AMD. There are also prior pacts between AMD and Intel.

While a assortment of the aforementioned patents expired in 2021, or not it’s our knowing that agreement is quiet in drive and Qualcomm could maybe maybe seemingly be discipline to commerce of protect an eye on rules. In other phrases, Qualcomm wouldn’t be capable to manufacture Intel-designed x86-64 chips unless AMD gave the inexperienced mild. It’s also seemingly one in every of the reasons why no one purchased AMD when it was on the ropes; whoever took over it would comprise to contend with Intel.

• AMD sharpens silicon swords to grab on chip and AI competitors
• Qualcomm reportedly eyeing Intel’s PC originate biz and more
• Pat Gelsinger’s gigantic belief to reinvent Intel is in jeopardy
• Intel frees its Foundry biz – and that is factual one in every of many indispensable shake-u.s.a.this present day

This isn’t the first time we comprise now hasten into rumors that Qualcomm was attempting to strip Intel for facets. An earlier document by Reuters citing unnamed sources alleged Qualcomm was in picking up Intel’s client PC originate industry.

The WSJ document comes factual days after Intel CEO Pat Gelsinger announced plans to lag off its sick foundry division as a standalone subsidiary; delay construction of its German and Polish foundry web sites; and consolidate its automotive and networking and edge (NEX) groups below its client division. All of this in a show to staunch the tech massive’s bleeding.

Main as much as the decision, Intel has been the subject of substantial speculation, including reports it planned to utterly dump its FPGA and autonomous driving industry objects. The chipmaker has since clarified that its belief to grab Altera public hasn’t modified – or not it’s already spun off and staring at for an IPO – and that it has no plans to present up its majority stake in Mobileye.

Intel isn’t the biggest tech company whose inventory has taken a roller coaster jog per whisperings. Early this month, Bloomberg cited unnamed sources in a document claiming that the US Division of Justice had issued subpoenas to Nvidia as phase of an ongoing antitrust investigation into the GPU massive.

Nvidia later denied the document, asserting that whereas it had made contact with the US authorities, it had not been subpoenaed. ®