Qualcomm is considering the acquisition of certain segments of Intel's design business to enhance its product offerings, as reported by two individuals familiar with the situation.

The mobile chip manufacturer has been evaluating various components of Intel, which is currently facing financial challenges and is looking to divest certain business units and assets.

According to one source, Qualcomm executives are particularly interested in Intel's client PC design division, although they are assessing all of Intel's design operations.

However, acquiring Intel's server segment may not align with Qualcomm's strategic interests, as noted by another insider.

An Intel spokesperson stated that Qualcomm has not initiated any discussions regarding a potential acquisition and emphasized Intel's strong commitment to its PC business. Qualcomm also chose not to comment on the matter.

The $184 billion company, recognized for its smartphone chips and as a supplier to Apple, has been contemplating the purchase of Intel's assets for several months, although these plans remain tentative and subject to change.

The sources requested anonymity due to the sensitive nature of the discussions. Intel recently reported a challenging second quarter, which included a 15% workforce reduction and a suspension of dividend payments, as executives seek ways to finance manufacturing initiatives and improve cash flow.

The revenue from Intel's PC client business fell by 8% to $29.3 billion last year, reflecting broader weaknesses in the PC market. Historically known for its "Intel Inside" campaign, Intel's client group produces chips for laptops and desktops globally.

Company leaders believe that the emergence of artificial intelligence in PCs will encourage consumers to upgrade their devices, potentially boosting sales. In its last fiscal year, Qualcomm reported total revenues of $35.82 billion.

Earlier this week, Intel introduced a new PC chip named Lunar Lake, which company executives claim delivers enhanced performance for artificial intelligence applications.

A substantial portion of the chip's fabrication was carried out by Taiwan Semiconductor Manufacturing Co., a shift from Intel's traditional in-house production methods.

Next week, Intel's board is scheduled to convene to consider a proposal from CEO Pat Gelsinger and other leaders regarding potential operational cuts aimed at conserving cash. Among the options being explored is the possible sale of its programmable chip division, Altera, according to Reuters.