Zhitong Finance has learned that Qualcomm (QCOM.US) has explored the possibility of acquiring part of Intel's (INTC.US) chip design business to expand the company's product portfolio, according to two informed sources. One source said that Qualcomm executives are very interested in Intel's client PC design business, but they are considering all the design departments of the company. Another source familiar with Qualcomm's operations said that acquiring other Intel businesses, such as the server business, is not significant for Qualcomm.

Insiders said that the mobile chip manufacturer is already considering the acquisition of different businesses from Intel. Intel is currently striving to generate cash and seeking to divest business units and sell other assets. As of the time of writing, an Intel spokesperson stated that Qualcomm has not yet contacted Intel about a potential acquisition and declined to comment on their plans. The spokesperson said that Intel is "firmly committed to the PC business." Qualcomm declined to comment.

With a market capitalization of $184 billion, Qualcomm is known for producing smartphone chips, with Apple as one of its clients. For several months, Qualcomm has been formulating plans to acquire part of Intel's business. Sources said that Qualcomm's interest and plans have not yet been finalized and may change.

Intel announced disastrous second-quarter results last month, including a 15% staff reduction and a suspension of dividend payments. Executives are working hard to address how to continue to fund the company's manufacturing plans and generate cash. Last year, with the overall softness of the personal computer market, Intel's revenue from the client PC business declined by 8% to $29.3 billion.

Intel's customer base was once known for the "Intel Inside" marketing campaign, and the laptop and desktop chips they produce are used in machines around the world. Executives say that the launch of AI personal computers will drive consumer upgrades and increase sales.

Earlier this week, Intel launched a new type of PC chip called Lunar Lake, with company executives stating that the chip provides outstanding performance for AI applications. Taiwan Semiconductor (TSM.US) manufactures a considerable portion of the chips, while Intel has always been an internal producer.

Intel's board of directors will hold a meeting next week to weigh the recommendations of CEO Pat Gelsinger and other executives to cut operations to save cash. Potential options reportedly include selling its programmable chip division, Altera.