Qualcomm has explored acquiring parts of Intel’s design business to strengthen its product portfolio, according to sources cited by Reuters. The mobile chipmaker is particularly interested in Intel’s client PC design segment, though it’s also assessing other design units. Qualcomm has been working on acquisition plans for months, but no formal offer has been made, and plans remain subject to change.
Intel, facing financial challenges after a poor second-quarter performance, is considering divestments to generate cash. The company’s PC client business saw an 8% revenue drop last year. Despite this, Intel remains committed to its PC division, recently launching a new AI-focused chip, Lunar Lake, in collaboration with Taiwan Semiconductor Manufacturing Co. Intel’s board will meet next week to discuss potential restructuring, which could include selling its programmable chip unit, Altera, according to Reuters.
Source: Reuters
Intel Corporation is reportedly exploring the sale of part of its stake in Mobileye ($MBLY), the autonomous driving and advanced driver assistance systems (ADAS) technology company. Intel initially acquired Mobileye in 2017 for approximately $15.3 billion, and in 2022, Mobileye went public again in an IPO, though Intel retained a significant majority stake.
The decision to sell part of its Mobileye holdings could be driven by a strategic need to raise capital for Intel’s ambitious plans to expand its semiconductor manufacturing business, especially as it faces increasing competition in the chip-making space. This move aligns with Intel’s broader goal of becoming a dominant player in the global chip supply chain by ramping up investments in new facilities and technology.
Selling a portion of Mobileye would allow Intel to unlock value from its investment while still retaining influence over the company’s operations, as Mobileye continues to be a leader in autonomous driving technology. Mobileye has partnerships with major automakers and is at the forefront of developing advanced driver assistance systems that could pave the way for fully autonomous vehicles in the future.
At present, no formal decision has been made, and Intel may continue to assess market conditions before proceeding with any sale of its stake in Mobileye.
Update
Intel has stated that it does not plan to sell its majority stake in Mobileye. The company stressed its goal of creating value and noted that Mobileye has the independence to take advantage of growth opportunities in autonomous driving technology. Intel remains dedicated to supporting Mobileye’s leadership in advanced driver assistance systems (ADAS).
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