Qualcomm approaches Intel about takeover

The discussions occurred in recent days, the newspaper said, citing unnamed people familiar with the situation. Even so, a deal is far from certain, according to the Journal. Representatives for Intel and Qualcomm declined to comment. The shares rose 3.4% to $21.87 in New York trading Friday, rebounding from a decline earlier in the day. The stock remains down 56% this year. Intel, once the world’s largest chipmaker, has been struggling with flagging sales and mounting losses — exacerbated by the loss of its technological edge. The company’s market valuation, at $93.5 billion, is now roughly half of Qualcomm’s. Still, a takeover would be the largest-ever transaction for the semiconductor market and potentially transform the industry. Shares of San Diego-based Qualcomm declined 2.9%, reflecting investors’ concerns about the risks of such a deal. Intel, based in Santa Clara, California, announced a raft of changes this week aimed at getting its business back on track. The moves included a multibillion-dollar deal with Amazon.com to make a custom AI semiconductor and a plan to turn Intel’s ailing manufacturing business into a wholly owned subsidiary. Qualcomm is the world’s biggest designer of smartphone processors, but it’s been trying to branch out into more areas. That includes chips that run personal computers, where Intel is still the dominant player.

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