Qualcomm's Non-Binding Offer to Acquire Intel Might Face Intense Antitrust Scrutiny
Brook.X
There have been rumors circulating that Qualcomm, a leading chip designer, is highly interested in Intel's chip design division for PCs and might consider acquiring Intel's processor design department for PCs.
This news has sparked widespread discussion within the industry, as Intel is one of the world’s leading chip manufacturers, especially dominant in the PC processor market.
Recently, The Wall Street Journal released new information citing unnamed sources, stating that the leading mobile processor manufacturer has made a non-binding offer to acquire Intel.
It's important to note that the specifics of this acquisition offer are still unclear, leaving us in the dark about whether Qualcomm intends to acquire just a part of Intel's chip design division as previously rumored, or if it plans to take over the entire company.
The idea of Qualcomm acquiring the whole of Intel seems far-fetched, but rumors abound. Despite Qualcomm's profitability, it is still significantly smaller in scale compared to Intel, making such an acquisition seem like an impossible feat.
Prominent analyst Ming-Chi Kuo from Tianfeng International suggests that Qualcomm's potential acquisition of Intel might only benefit Qualcomm's AI PC chips. Given Intel's current market value of $93billion, acquiring Intel would place a tremendous financial burden on Qualcomm.
However, a larger issue looms over this potential acquisition. Both Qualcomm and Intel are top-tier chip manufacturers/designers in the industry. A Qualcomm acquisition of Intel would almost certainly face strong opposition from major market regulatory bodies worldwide, subjecting Qualcomm to antitrust pressures surpassing any previous antitrust review in history.
From an antitrust perspective, it's nearly impossible for Qualcomm's acquisition of Intel to receive approval from major market regulators, as it would significantly impact the market. Thus, Qualcomm's acquisition efforts might ultimately prove to be futile.
