Qualcomm\u00a0has explored the possibility of acquiring portions of Intel’s\u00a0design business to boost the company’s product portfolio, according to two sources familiar with the matter.\u00a0<\/p>\r\n\r\n\r\n\r\n
The mobile chipmaker has examined acquiring different pieces of Intel, which is struggling to generate cash and looking to shed business units and sell off other assets, the people said.\u00a0<\/p>\r\n\r\n\r\n\r\n
Intel\u2019s client PC design business is of significant interest to Qualcomm executives, one of the sources said, but they are looking at all of the company\u2019s design units.\u00a0<\/p>\r\n\r\n\r\n\r\n
Other pieces of Intel such as the server segment would make less sense for Qualcomm to acquire, another source with knowledge of Qualcomm’s operations said.\u00a0<\/p>\r\n\r\n\r\n\r\n
Qualcomm has not approached Intel about a potential acquisition and declined to comment on its plans, an Intel spokesperson said. Intel is “deeply committed to our PC business,” the spokesperson said.\u00a0<\/p>\r\n\r\n\r\n\r\n
Qualcomm declined to comment.\u00a0<\/p>\r\n\r\n\r\n\r\n
The $184 billion Qualcomm, which is known for chips found in smartphones and counts Apple as a customer, has been working on plans to buy pieces of Intel for months. Qualcomm\u2019s interest and plans have not been finalized and could change, according to the sources.\u00a0<\/p>\r\n\r\n\r\n\r\n
The two sources declined to be named as they were not authorized to discuss the matter publicly.\u00a0<\/p>\r\n\r\n\r\n\r\n
Intel reported a disastrous second quarter last month, which included a 15% reduction in its staff and a pause on paying dividends. Executives are grappling with how to continue to fund the company\u2019s manufacturing plans and generate cash.\u00a0<\/p>\r\n\r\n\r\n\r\n
Its PC client business revenue dropped 8% to $29.3 billion last year, amid overall weakness in the PC market.\u00a0<\/p>\r\n\r\n\r\n\r\n
Once known for it’s “Intel Inside” marketing campaign, Intel\u2019s client group makes laptop and desktop chips used in machines around the world. Executives have said the introduction of artificial intelligence PCs will drive consumers to upgrade their computers and generate more sales.\u00a0<\/p>\r\n\r\n\r\n\r\n
Qualcomm generated $35.82 billion in overall revenue in its last fiscal year.\u00a0<\/p>\r\n\r\n\r\n\r\n