Bloomberg reports that Qualcomm was waiting for the outcome of the US election before deciding on a possible deal, with the company also concerned about the complexity of any potential deal, which would represent one of the largest takeovers in tech history.
Instead of buying Intel outright, Bloomberg sources suggest Qualcomm may look at pieces of the company or may push its interest further down the line.
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Qualcomm was believed to be among those interested in acquiring Intel as the semiconductor’s fortunes have fallen following a period of economic instability.
Emerging as a potential buyer in September, conflicting reports suggested Qualcomm was looking at buying the company, while others said the Snapdragon firm was only interested in Intel’s design division, which develops designs such as its leading processors for PCs.
Qualcomm’s reported decision to hold off until after the election is particularly significant given the result.
President-Elect Donald Trump has vowed to eliminate federal subsidies for chipmakers provided under the CHIPS Act, a crucial funding mechanism for Intel, which has been slated to receive billions in support.
While Intel was earmarked for $8.5 billion in direct funding, reports from The New York Times this week revealed that the Biden administration has already trimmed $500 million from the allocation, reportedly concerned about Intel’s ability to meet its investment commitments.
The reduction is also believed to have considered a further $3 billion awarded to Intel to produce domestically manufactured semiconductors for the US military.
Intel plans to use the CHIPS Act funds to build new factories in the US while also modernising some of its existing plants.
The Biden administration is believed to be racing to finalise subsidy deals with chipmakers, with TSMC’s $6.6 billion grant signed off earlier this month.
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