Qualcomm Reportedly Taps Intel With An Acquisition Offer

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With Wall Street seemingly unimpressed with Intel's latest flourishes to its turnaround strategy, including a jumbo deal with Amazon, the chipmaker might eventually conclude that an outright sale is its only viable exit from the current quagmire. And now, we reportedly have a serious offer that just might tempt Intel.

To wit, the Wall Street Journal is now reporting that Qualcomm has approached Intel with a takeover offer. While the talks remain exploratory for now, any deal would have monumental ramifications for the industry at large.

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Also, given Intel's heft, any takeover deal is quite likely to attract antitrust scrutiny from the authorities. However, in what can prove to be an effective mitigating force, authorities in the US might judge such a takeover critical for national security purposes, thereby adding a potent tailwind to Qualcomm's purported buyout offer for Intel.

Of course, after weeks of speculation, Intel recently revealed its latest game plan to counter a deep-seated malaise that is chipping away at its core competencies.

The plan centers around enhancing momentum within the Foundry division. Specifically, Intel is now planning to spin out its manufacturing arm as a separate subsidiary, which adds some much-needed distance between Intel's chip design and manufacturing competencies and can play an important role in attracting additional customers.

Of course, Amazon has now emerged as the anchor customer for Intel's chip fabrication ambitions. In the first phase of their planned collaboration, the chipmaker will leverage its "Intel 3" process to build a custom Xeon 6 chip for Amazon's data center workloads. In the second phase, Intel will produce an "AI fabric chip" for Amazon's