Qualcomm, a leading name in mobile chip technology, is reportedly in early discussions to acquire Intel, which could significantly impact the global semiconductor industry. According to The Wall Street Journal, this potential deal comes at a time when Intel is struggling to regain its market position, despite recent strategic moves, including a notable partnership with Amazon.

Intel’s efforts to revitalize its business have not been well-received by Wall Street, sparking speculation that the company may need more drastic measures to overcome its current challenges. If Qualcomm proceeds with the acquisition, the deal could drastically alter the competitive landscape of chip manufacturing, shaking up the industry.

However, the potential merger would likely face regulatory scrutiny due to Intel’s strong market presence. Concerns over antitrust laws and national security may also play a crucial role in how U.S. regulators respond to the deal.

Recently, Intel announced a shift in focus with plans to separate its chip design and manufacturing divisions. Its partnership with Amazon includes a two-phase collaboration where Intel will produce custom Xeon 6 chips and develop an AI fabric chip for Amazon Web Services (AWS), utilizing cutting-edge manufacturing technology expected to rival Taiwan Semiconductor Manufacturing Company’s (TSMC) 2nm process.

In addition to strategic collaborations, Intel has been implementing cost-saving measures, aiming to cut $10 billion in expenses, including workforce reductions and scaling down its global real estate holdings. The company’s restructuring plan also involves a temporary halt in construction at facilities in Europe and Malaysia, as well as a significant reduction in its employee base by the end of 2024.