According to a media report, the struggling American semiconductor manufacturer Intel is the target of competitor Qualcomm. Qualcomm has approached Intel in recent days with a takeover bid.
That was reported by the Wall Street Journal (WSJ) on Friday, citing people familiar with the matter. Intel shares subsequently rose 8 percent in late U.S. trading, while Qualcomm shares fell 4 percent.
Chip giants remain silent
Neither Qualcomm nor Intel were initially available to make a statement. Intel, once the world’s largest chipmaker, has missed the boom in artificial intelligence (AI). The group does not have competitive products for these computationally intensive applications. At the same time, demand for classic processors is declining.
Intel is struggling with billions in losses and has embarked on a cost-cutting program. CEO Pat Gelsinger wants to turn things around by selling parts of the company, cutting capital expenditures and cutting about 15,000 jobs. The stock price has fallen in recent months.
Intel announced Monday that it would postpone the construction of a factory in Magdeburg for two years. The group had originally planned to invest 30 billion euros and create around 3,000 jobs there. Production of the most modern chips was expected to begin around 2027.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
