 "Intel is the largest beneficiary of the 2022 Chips and Science Act, set to receive up to $8.5 billion, provided it stays on track with its factory expansion plans. Any potential deal with Qualcomm would require careful political backing. Image credit: Reuters, Reuters")
Qualcomm’s interest in acquiring parts of Intel’s design business has taken a back seat for now, with the tech giant adopting a wait-and-see strategy.
A few months ago, rumours started doing the rounds that Qualcomm was eyeing Intel’s PC segment to broaden its offerings, but according to recent reports, any decision has been put on hold until the dust settles on the upcoming US presidential election.
The company appears to be carefully considering how the election results and potential policy changes could shape the regulatory landscape.
Qualcomm seems in no rush, possibly waiting not only for the November outcome but also for the new president’s inauguration in January 2025. This patient approach reflects the company’s intent to assess how the next administration will handle antitrust regulations before committing to such a big move.
Qualcomm’s cautious stance makes sense, especially given the regulatory hurdles it could face with a deal of this magnitude. The company is no stranger to scrutiny — Europe’s regulators have previously locked horns with it over antitrust concerns.
By holding off for now, Qualcomm is buying time to better navigate potential challenges and avoid unnecessary friction with US regulators, depending on how the political winds shift. A report by Bloomberg suggest the company wants clarity on the next government’s stance toward antitrust enforcement and relations with China, which could significantly influence the acquisition landscape.
Intel’s strategic position adds complexity to the situation. The company plays a critical role in the US government’s push to revive domestic chip production.
In fact, Intel is the largest beneficiary of the 2022 Chips and Science Act, set to receive up to $8.5 billion, provided it stays on track with its factory expansion plans. Any potential deal with Qualcomm would require careful political backing, given Intel’s importance in US chipmaking ambitions.
Impact Shorts
More ShortsMeanwhile, Intel is grappling with financial struggles. The company recently reported a net loss of $1.6 billion for the second quarter of 2024, with analysts predicting another $1 billion loss on the horizon. With Intel facing headwinds, Qualcomm’s strategic patience could also offer an opportunity to strike the right deal at the right time.
For now, it looks like Qualcomm is playing it smart, keeping its cards close to its chest until the election’s outcome provides a clearer picture.