Sources claim Qualcomm delaying Intel purchase offer until after U.S. presidential election

Sources familiar with the matter have told Bloomberg that Qualcomm is waiting for the results of the U.S. presidential election on November 5, before deciding on making a move on Intel, with some even saying that the company won’t move until the new U.S. president has been inaugurated in January 2025. People familiar with the matter told Bloomberg that the chipmaker is considering the geopolitical climate after the election, especially as it wants to gauge the anti-trust policies of the new administration, as well as how America’s relationship with China would be affected by the new administration.

Intel recently announced a $1.6 billion loss, and that the company is working hard to turn things around. This includes cutting 15% of its global workforce (including workers at its Oregon site), pausing major projects, and selling off assets to raise funds. The company is even considering selling or spinning off its manufacturing division, especially as it has continually cost the company billions of dollars.

While the company is also on track to receive over $8.5 billion in CHIPS Act funding, this is released in tranches, meaning it will take some time before the company can take advantage of these funds. At the moment, it seems that Intel is in need of fresh funding, and Qualcomm is reportedly one of those interested in acquiring a piece of Intel. There have already been reports that it’s already exploring buying some parts of Intel’s PC client business, and that the company has quietly approached Intel to discuss an offer.

But with the CHIPS Act award plus the uncertainty of U.S. elections, Qualcomm is apparently holding off until the political climate is a bit more stable. After all, Intel is one of the pillars of American semiconductor industry and is the biggest awardee of Washington’s semiconductor investment program. Furthermore, Qualcomm’s status as one of the largest suppliers of mobile chip supplier, plus Intel’s x86 leadership, means that any deal would definitely go through the anti-trust microscope in the United States, Europe, and China.

The delayed decision would also allow the Qualcomm to see Intel’s third-quarter earnings call. Since turnarounds would take time, we still expect Team Blue to stay in the red, which could further drive the price for Intel’s parts down and save Qualcomm millions or even billions of dollars. Nevertheless, Qualcomm isn’t the only interested party in purchasing parts of Intel. Alternative asset manager Apollo has offered a $5 billion equity-like investment for the company, while a questionable rumor said that Arm also made a move to buy Intel’s product division.

Whether Qualcomm will eventually make an offer or not, Intel must get through these next few months on its own. Although Secure Enclave and the CHIPS Act awards will inject some cash in the company, these are not funds that Intel can use as it pleases. Hopefully, the company can turn its fortunes sooner rather than later, otherwise, it risks seeing some of its parts, especially the iconic Client Computing Group, being sold.