On Friday (Sept.20), The Wall Street Journal reported that Qualcomm has approached Intel about a potential takeover. While the deal is described as “far from certain,” it would mark a significant shift for Intel, once the world’s most valuable chipmaker, known for its x86 processors that long outperformed Qualcomm’s Arm chips in markets outside of mobile.

The New York Times later confirmed the report, adding that Qualcomm has not yet made an official offer for Intel.

If the deal were to go through and pass regulatory hurdles, it would be a major win for Qualcomm, which recently re-entered the desktop processor market as part of Microsoft’s AI PC strategy, after years of success in mobile chip dominance.

Intel, under CEO Pat Gelsinger, has made significant changes, including the decision to spin off its chipmaking business, a segment previously seen as a key advantage over AMD and fabless chipmakers that rely on TSMC for production. Intel has also had to lean on TSMC for its cutting-edge chip production as it works to rebuild its own manufacturing capabilities, which have contributed to its recent financial losses.

Intel’s struggles extend beyond manufacturing. The company has lost ground in key areas of the semiconductor industry, particularly in AI server chips, where Nvidia dominates. Intel’s foray into producing GPUs for gamers and creators has yet to make a notable impact.

In the gaming sector, AMD has gained significant ground, with its chips powering every major game console (aside from the Nvidia-powered Nintendo Switch) for the past decade. Intel reportedly missed an opportunity to change this trend with the upcoming PlayStation 6.

Intel’s recent challenges with PC gamers have also contributed to its struggles, with two generations of flagship chips experiencing crashes. While Intel has since extended warranties and issued updates, these issues dented its reputation.

In the laptop market, Intel faces growing competition from Qualcomm, AMD, and Apple, all of which have made gains in battery life and integrated graphics performance. In response, Intel has overhauled its approach to flagship laptop chips twice, and the success of its upcoming Lunar Lake processors, set to debut in October, could be crucial for the company’s future.