U.S. chipmaker Qualcomm has decided to drop its interest in acquiring fellow semiconductor giant Intel, citing complexities surrounding the potential deal, according to Bloomberg News and reported by Reuters.

Bloomberg noted that while Qualcomm is no longer pursuing a full acquisition, it may explore acquiring specific segments of Intel’s business. There remains a possibility of revisiting the acquisition proposal in the future.

Both companies have declined to comment on the matter.

Earlier reports in September suggested Qualcomm had begun discussions regarding a potential takeover of Intel, which, if realized, would have been one of the largest deals in the semiconductor industry. However, such a move would have faced intense global antitrust scrutiny. Qualcomm had also considered acquiring certain parts of Intel’s design business, but Intel previously stated it had not received such a proposal.

Once a leader in chip manufacturing, Intel has recently lost ground to competitors like TSMC. Strategic missteps, such as lagging behind in generative AI technologies and missing opportunities like OpenAI investments, have further weakened Intel’s market position. Earlier this year, Intel was dropped from the Dow Jones Industrial Average after 25 years, replaced by Nvidia. Its stock value has plummeted by over 50% in 2024.

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