Qualcomm recently approached Intel to explore a potential acquisition, with the company’s chief executive “personally involved” in the negotiations, according to a report by Reuters.

Reuters reported that Qualcomm chief exec Cristiano Amon has been actively examining various options for a potential deal with the troubled chipmaker.

Earlier this month, Reuters reported that the semiconductor and service specialist was exploring the acquisition of certain segments of Intel’s design business.

Sources close to the matter told the news agency that the mobile chip giant was interested in bolstering its product portfolio, with a focus on Intel’s client PC design operations, as it seeks to expand its technological offerings. They added that Qualcomm, which generated $35.82 billion in overall revenue in its last fiscal year, has not yet finalised any plans, and its current interests could change.

According to a third person familiar with the matter, the negotiations are at an early stage, with no formal offers currently being made.

In August, the chip giant’s shares plummeted 10.5 per cent, with the chipmaker announcing it would cut 15 per cent of its 110,000-strong workforce as it looks to streamline its operations and “meaningfully cut spending and headcount.”

Intel’s PC client business saw an 8 per cent revenue decline to $29.3 billion last year, reflecting an overall decline in the PC market. In an effort to revitalise the arm, Intel has recently introduced a new PC chip, Lunar Lake, that aims to provide enhanced performance for AI applications.

Qualcomm has roughly $13 billion in cash, according to recent company filings.

Intel has been focusing on AI processors and creating a chip contract manufacturing business as rumours suggest the firm is looking to shed business units and sell assets to stabilise its cash flow, Reuters reported earlier this month.

The news agency added that the company’s board was scheduled to meet next week to review proposals from chief executive Pat Gelsinger and other executives with potential strategies to access liquidity, including the sale of Intel’s programmable chip unit Altera.

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