Qualcomm Inc (NASDAQ:QCOM, ETR:QCI).’s interest in acquiring Intel Corp (NASDAQ:INTC, ETR:INL). has reportedly cooled, according to a Bloomberg report citing “people familiar with the matter”.
Rumours of Qualcomm’s interest in Intel first emerged in September, raising the prospect of potentially the largest deal in microchip history.
Although Intel has suffered a substantial share price decline in recent years, the Silicon Valley trailblazer still commands a $107 billion market valuation.
Numerous factors may be playing into Qualcomm’s reported renege.
Despite billions of dollars in government subsidies, Intel’s chip manufacturing business has failed to attract significant demand due to its inferior technological capabilities compared to Taiwan Semiconductor Manufacturing Company.
The US government has since reduced Intel’s $8.5 billion subsidy package under the CHIPS and Science Act by half a billion dollars, according to recent reports.
Intel has also been booted off the Dow Jones Industrial Average in place of Nvidia Corp.
Qualcomm has itself played a part in Intel’s woes after Intel’s age-old partner Microsoft Corp (NASDAQ:MSFT) opted to use Qualcomm chips over Intel’s in some new Windows laptops.
Intel shares are currently down 48% year to date.