Qualcomm Inc.’s interest in pursuing an acquisition of Intel Corp. has cooled, according to people familiar with the matter, upending what would have likely been one of the largest technology deals of all time.
An Intel takeover would have ranked among the largest acquisitions in history, based on its current market value. It came just weeks after Intel communicated a bruising earnings report where it delivered a disappointing revenue forecast and outlined a 15% reduction in headcount in an effort to “resize and refocus.”
Qualcomm would have had to handle Intel’s money-losing semiconductor manufacturing unit, a business where it has no experience. The Santa Clara, California-based company has a market value of about $107 billion. That’s despite its stock having declined about 51% year to date.The reduced CHIPS Act grant to below $8 billion from $8.5 billion shouldn’t have a major impact on Intel’s capital-spending trajectory or manufacturing progress, though execution challenges remain.