Chip industry revolution: Qualcomm wants to acquire Intel, "Arm vs X86" ushering in the final showdown?

In the early hours of the 21st, there were reports that Qualcomm is in talks to acquire Intel. If this deal is reached, it will be a major change in the computer industry.

For a long time, Intel's x86 architecture and Qualcomm's Arm architecture have been in a "love-hate" relationship in the chip market. The x86 architecture dominates the PC field, while the Arm architecture has advantages in the mobile device field.

However, with the decline of the Intel empire, this situation may be reversed. Qualcomm's intention to acquire part of Intel's business will undoubtedly have a profound impact on this decades-long competitive landscape, giving Qualcomm a stronger competitive edge in the PC market.

Qualcomm is continuously attacking the PC market

For many years, Intel has had a strong presence in the data center and server markets. The x86 processor has led the PC field.

However, in recent years, ARM architecture chips have been increasingly favored by manufacturers. ARM chips are known for their high energy efficiency and low heat generation, and have achieved great success in the mobile device field.

Qualcomm is well-known for its smartphone chips, but in recent years, it has been continuously attacking the PC market and taking advantage of Intel's continued struggles.

Qualcomm recently announced that its Snapdragon X Plus 8-core processor adopts ARM architecture, designed specifically for PCs priced as low as $700, demonstrating excellent performance in energy efficiency and battery life. Qualcomm has also established an exclusive partnership with Microsoft, with Copilot+ PCs equipped with Qualcomm's X series chips. Intel and AMD have not yet equipped these PCs.

"This puts Qualcomm ahead by a few quarters," said Mario Morales, vice president of IDC's support technology and semiconductor group. "However, Qualcomm took the lead early on, but this is a long game."

Earlier this year, Microsoft launched a new generation of Surface laptops with Qualcomm ARM chips, which even outperformed Apple's latest MacBook with M3 chips in some performance tests, demonstrating the competitiveness of ARM chips in the PC field.

Innovation focusing on AI PCs will be more competitive

Analysts believe that Qualcomm's rise may signify a significant shift in the PC chip market landscape, with innovation focusing on AI PCs becoming more competitive.

"If Qualcomm takes this step (acquiring Intel), it may signify a major shift in the balance of power in the PC chip market," said Scott Dylan, founder of NexaTech Ventures.

As the mobile smartphone market becomes increasingly saturated, Qualcomm is looking for growth and diversification, including ventures into the field of artificial intelligence. Scott Dylan added that this will ultimately be a victory for Qualcomm in diversifying its strategy beyond mobile chipsets, "but it may also signify Intel's retreat from its once dominant position in the semiconductor market." Earlier this month, Qualcomm CEO Cristiano Amon stated in an interview with CNBC, "We are embarking on a journey of diversification and ensuring that our technology is now expanding into other markets."

He added, "The PC market is undergoing 'fundamental' changes for two reasons: the convergence of mobile and PC. People are beginning to expect performance in terms of battery life similar to that of smartphones - as well as the integration of AI with desktop computers."

Looking back at Intel, the company is at a critical crossroads. Massive losses forced the company to announce a workforce reduction of over 15% in August this year, along with a large-scale strategic adjustment.

Last week, Intel's board of directors held a three-day board meeting, considering various strategic options, including scaling back multi-billion-dollar factory projects, selling off parts of subsidiaries such as Mobileye and Altera acquired earlier, and possibly spinning off core businesses into independent companies.

Intel is set to release two products, Lunar Lake and Panther Lake, in the future, with the market watching closely to see if this will be Intel's last chance