Qualcomm's interest in acquiring Intel appears to have diminished due to the complexities involved in the potential deal, as reported by Bloomberg News on Monday, citing sources familiar with the situation.
The challenges associated with acquiring the entirety of Intel have rendered the deal less appealing to Qualcomm, which may consider targeting specific segments of Intel or revisiting its interest at a later date.
Neither company responded to requests for comments on the Bloomberg report outside of regular U.S. business hours. Qualcomm initially approached Intel in September to discuss a possible acquisition, as reported by Reuters and others.
A merger between the two companies would represent the largest in the sector and would likely face significant antitrust scrutiny worldwide, given that it would combine two leading chip manufacturers.
Additionally, Reuters noted that Qualcomm had previously looked into acquiring parts of Intel's design business shortly before reports surfaced regarding a broader acquisition.
At that time, Intel stated that Qualcomm had not made any formal approach regarding an acquisition, while Qualcomm chose not to comment.
Once a leader in chip manufacturing, Intel has recently lost its competitive edge to rival TSMC and has missed opportunities in the generative artificial intelligence sector, including a missed investment in OpenAI, the creator of ChatGPT.
Earlier this month, Intel was removed from the Dow Jones Industrial Average after a 25-year presence, with its stock price declining by over 50% this year.