Qualcomm, the American semiconductor giant, has approached Intel regarding a possible takeover, according to a report from The Wall Street Journal.

While no official offer has been made, sources suggest the negotiations are still preliminary, and the deal remains “far from certain.” The New York Times also confirmed the report, noting that Qualcomm has yet to bid formally.

If the acquisition proceeds and passes regulatory hurdles, it would represent a major strategic move for Qualcomm, which has re-entered the desktop processor market as part of Microsoft’s AI-driven PC initiative. Known primarily for its dominance in mobile processors, Qualcomm is now expanding its reach, potentially positioning itself as a more formidable player in the broader semiconductor industry.

In contrast, Intel is grappling with significant challenges. Despite some profitable business segments, the company reported a $1.6 billion loss earlier this year, triggering a shift in strategy.

Intel has made deep cuts, reducing its workforce by over 15%, and is restructuring its business. CEO Pat Gelsinger has halted all “nonessential” work and announced plans to spin off Intel’s chip manufacturing division, a former strength now weakened by its reliance on Taiwan’s TSMC for some of its most advanced chips.

Intel’s production challenges, including delays with its in-house 18A manufacturing process, have compounded its difficulties. These setbacks have undermined Intel’s competitiveness in a market increasingly dominated by rivals like AMD and fabless manufacturers. Qualcomm’s potential acquisition of Intel could reshape the semiconductor industry, but much remains uncertain as talks continue.