Qualcomm (QCOM.US) acquires Intel Corporation (INTC.US)? The latter's stock briefly increased by over 9%.

Reports have stated that Qualcomm (QCOM.US) has been in talks with Intel Corporation (INTC.US) recently regarding a possible acquisition. Upon the release of this news, Intel Corporation's stock price surged in Friday's after-hours trading, temporarily rising by over 9%. By closing, the stock had risen by 3.31% to $21.84. The report cited sources familiar with the matter, stating that the deal has not been finalized and there are still many uncertainties. Intel Corporation has refused to comment on this, and Qualcomm has not responded to the news. Despite Qualcomm and Intel Corporation being competitors in various markets such as personal computers and laptops, the two companies have significant differences in their operating models. Qualcomm does not have its own production capabilities, relying mainly on Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung for chip production. In contrast, Intel Corporation owns its own production facilities. Although Qualcomm's market size is not as large as Intel Corporation's, with sales of $35.8 billion in the fiscal year 2023 compared to Intel Corporation's $54.2 billion, Qualcomm's leading position and innovative capabilities in chip design still give it strong competitiveness. However, antitrust regulations and national security issues present significant challenges for such potential transactions. Both companies have important businesses in the Chinese market, and China's antitrust regulatory authorities have previously blocked Intel Corporation's attempted acquisitions of Tower Semiconductor and NXP Semiconductors NV. In recent years, other major merger deals have also faced regulatory obstacles. For example, Broadcom Inc.'s proposed acquisition of Qualcomm for over $100 billion in 2017 was ultimately halted by the Trump administration due to national security concerns. In 2021, NVIDIA Corporation's attempt to acquire Arm was also blocked by the US Federal Trade Commission due to antitrust issues, and the deal was officially terminated in 2022 under regulatory pressure in Europe and Asia. Intel Corporation's performance this year has been less than ideal. Just last month, the company issued a series of negative news, leading to a sharp decline in its stock price. This included laying off 15,000 employees, suspending dividends, disappointing second-quarter financial results, and providing weaker future performance guidance. Following the financial report, Intel Corporation CEO Pat Gelsinger stated that while these decisions were "painful and difficult," they were necessary for the company's future. He mentioned that Intel Corporation has reached key milestones in its transition process, but in order to achieve the company's "grand plans" for the future, there needs to be a refocus on efficiency. Intel Corporation's stock price has fallen by approximately 55% so far this year.