Qualcomm’s bid to buy Intel hinges partly on US election, China scrutiny, sources say

Qualcomm, which has made informal inquiries with Chinese regulators, could wait until January to make a decision, sources say

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The Qualcomm headquarters in San Diego, California. Photo: The San Diego Union-Tribune/TNS

Published: 11:45am, 16 Oct 2024

Qualcomm is likely to wait until after the US presidential election in November before deciding whether to pursue an offer to buy Intel, people familiar with the matter said.

San Diego-based Qualcomm wants greater clarity on the new occupant of the White House before deciding its next move because of the impact any future administration would have on the antitrust landscape and America’s relationship with China, according to the people, who asked not to be identified discussing confidential information.

Qualcomm could opt to wait until after the inauguration of the new US president in January before deciding how to proceed, given the many complexities of a potential transaction involving Intel, some of the people said.

A combination of Qualcomm and Intel, whose products are key to the digital framework supporting everyday life – from smartphones to electric vehicles – would almost certainly draw intense scrutiny from antitrust regulators in the US and around the world. That includes China, a key market for both Qualcomm and Intel.

Intel is set to report third-quarter earnings later this month. Photo: AFP

Qualcomm made a preliminary approach to Intel on a possible takeover of its struggling rival in September. In the same month, the company made informal inquiries with antitrust regulators in China to gauge their stance on any potential deal, some of the people said.

Qualcomm has not received any feedback from Chinese authorities, which are waiting to see if the company actually makes a formal bid, they said.