Qualcomm sets sights on sections of Intel’s ailing chip business

This week witnessed the debut of Intel’s Lunar Lake processor, tailored for empowering AI applications, in a bid to reclaim a competitive advantage. Nonetheless, Intel opted to delegate substantial parts of the chip’s manufacturing to TSMC, deviating from its customary reliance on internal production.

Qualcomm’s strategic expansion

Through a potential acquisition, Qualcomm stands to notably broaden its presence in the PC processor market, increasingly entwined with AI-centric computing. Gogia suggests that such a transaction would “enable Qualcomm to establish a specialized position in supporting devices that facilitate AI operations sans an online connection.” This move could further solidify Qualcomm’s partnership with Microsoft, particularly as both entities pursue prospects in AI-powered PCs.

Qualcomm might also harbor interest in Intel’s server and HPC sectors, as Neil Shah, Vice President of Research at Counterpoint Research, speculated. “This is a critical domain where Qualcomm has yet to engage, while Intel faces challenges from NVIDIA and AMD,” he remarked, noting that Intel’s Altera (FPGA) and Movidius (Visual Processing Units) could help plug gaps in Qualcomm’s array of offerings.

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AndyC

Andy Curtis is an award-winning security consultant, researcher and public speaker. He has been working in the computer security industry since the early 1990s, having been employed by state and federal government, leading healthcare and banking providers across three continents. He has given talks about computer security for some of the world’s largest companies, worked with law enforcement agencies on investigations into hacking groups, and is a regular voice on TV and radio explaining IT security threats.

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