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How Intel fell from global chip champion to takeover target

Livemint · 2m

Intel, once a dominant leader in the semiconductor industry, is now facing the possibility of being acquired by Qualcomm, highlighting its strategic missteps and the rise of artificial intelligence (AI). Intel's manufacturing setbacks and failure to anticipate the demand shift towards AI chips made by rival Nvidia have contributed to its decline. While a deal with Qualcomm is uncertain, the idea of the smartphone-chip giant acquiring Intel would have been unthinkable in the past. Intel's CEO, Pat Gelsinger, had pursued a costly turnaround strategy, but the company's struggles in the AI market have led to significant job cuts and cost reductions. A positive turnaround for Intel is still possible, contingent on the success of their next-generation chip-making technology. Overall, Intel's core chip business faces challenges in recovering as the market continues to focus heavily on AI chips.