By outdoor-nature-child.com Sources indicate that Qualcomm may wait until after the November U.S. presidential election to decide whether to make a bid for Intel.
Intel is at the heart of the U.S. government’s initiative to revive domestic chip manufacturing, making political support for any potential deal crucial. The Biden administration has consistently emphasized the importance of semiconductor manufacturing to national security. If Intel continues to advance its factory construction plans, it stands to gain maximum funding under the CHIPS and Science Act of 2022.
Previously, insiders suggested that Qualcomm has been in discussions with U.S. regulators and believes that a merger between American companies could ease any concerns.
Post-election timing for a potential bid could provide Qualcomm with additional advantages. Intel is set to release its third-quarter earnings report later this month. If past disappointing performance impacts the stock price of a potential target, Qualcomm’s acquisition costs could decrease significantly. Analysts project that Intel will once again report a net loss exceeding $1 billion for the previous quarter.
Insiders report that discussions within Qualcomm are ongoing, with uncertainty about whether they will actually extend a bid to Intel, and that timelines may shift.
Under CEO Pat Gelsinger’s leadership, Intel has rolled out an ambitious plan to reshape the company with new products, technologies, and external customers. In a recently announced restructuring effort, Intel plans to spin off its programmable chip division into an independent business and seek public stock sales or investors.