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intel, once the world's most valuable chip company, has seen its shares fall about 60% this year.

phoenix technology news, september 21, beijing time, according to an exclusive report from the wall street journal, recently, qualcomm, the world's leading chip manufacturer, proposed an acquisition plan to its competitor intel. if this move is successful, it is expected to become one of the largest and most far-reaching technology mergers and acquisitions in recent years.

intel, once a chip giant with a market value of approximately $90 billion, is currently facing one of its most severe challenges in 50 years.

according to multiple people familiar with the matter, although the acquisition plan is still in its early stages and faces many uncertainties, including the possibility of strict antitrust review, the merger of qualcomm and intel has attracted widespread attention in the industry. in order to facilitate the transaction, qualcomm may consider divesting some or all of intel's assets to meet regulatory requirements.

intel's predicament is fully reflected in the capital market.its stock price has plummeted by about 60% this year, and its market value has shrunk by more than $200 billion from its peak in 2020. the relevant report of the wall street journal unexpectedly brought a glimmer of recovery to intel's stock price, which closed up more than 3% on friday.

at the same time,qualcomm, a leader in the smartphone chip market, has a market value of approximately $185 billion and its stock price has risen by nearly 17% this year.qualcomm not only provides key chips for many high-end devices including apple's iphone, but also actively deploys in the field of artificial intelligence to cope with competitive pressure from giants such as nvidia.

if the acquisition is successful, qualcomm will significantly expand its business scope and realize a strong combination of mobile phone chips and intel's chip business in the personal computer and server fields. this strategic move will not only help qualcomm consolidate its leading position in the global chip market, but also promote in-depth cooperation between the two companies in emerging technology fields such as artificial intelligence.

it is worth noting that as the chip industry becomes increasingly politicized, qualcomm and intel are both regarded as leading companies in the u.s. chip industry. intel is actively seeking government subsidies to support its local plant construction plan and is committed to becoming a leading chip foundry service provider. qualcomm has also previously tried to cooperate with intel to jointly explore new opportunities in the chip foundry field.

however, intel's performance in recent years has not been satisfactory.the company announced massive layoffs and a dividend suspension to cut costs after releasing dismal quarterly earnings.in addition, intel also announced a number of strategic adjustment measures, including suspending some overseas factory projects, to meet industry challenges.

industry analysts pointed out that intel's current predicament has prompted the market to speculate on its future direction. although some believe that a split may be one of the effective ways to get out of its predicament, there are still many obstacles to achieving this goal in the short term. qualcomm's proposed acquisition plan provides new possibilities for intel's future development.

it is worth mentioning thatif qualcomm successfully acquires all of intel's assets, the transaction size will far exceed microsoft's previous record of us$69 billion to acquire activision blizzard, becoming one of the largest technology m&a transactions in history.however, the realization of this vision still requires overcoming many difficulties and waiting for the verification of time. (author/han tianshu)

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