Report: Intel Considers Buying Broadcom

If a Broadcom-Qualcomm merger becomes likely, Intel may intervene. It's reportedly considering a bid for Broadcom.

Intel has been watching Broadcom's hostile takeover of Qualcomm, knowing that a potential tie-up represents a "serious competitive threat," according to a new report from The Wall Street Journal, citing unnamed sources.

Intel is "eager" for the takeover attempt to fail, the report said. Nevertheless, the company has been preparing a range of fallback plans, including a possible acquisition of Broadcom itself.

On Friday, Intel declined to comment on the report. However, a company spokeswoman said it was still focusing on integrating two previous acquisitions, Mobileye and Altera, into Intel's business. Together, both those purchases cost the company over $30 billion.

A potential bid for Broadcom would surpass that amount; it has a market value of around $104 billion.

Broadcom hasn't commented on the report. Since November, the company has been trying to acquire Qualcomm, a major provider of smartphone chips and a key rival to Intel.

Qualcomm has been fighting the takeover attempt, saying Broadcom's offer of $117 billion is too low. Another potential roadblock is government regulation. The Treasury Department is worried a merger could dampen the US's competitive edge in wireless technologies, opening the door for China to lead in the sector.

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US: Broadcom-Qualcomm Merger May Pose National Security Risk

Intel's opposition to the merger adds another wrinkle. The company's other fallback plans include making smaller acquisitions to compete with a combined Broadcom-Qualcomm, according to The Wall Street Journal.

In the meantime, Broadcom is trying to allay fears that a merger with Qualcomm poses a national security risk. On Friday, the company sent a letter to members of Congress, saying it'll work to ensure the US remains a leader in wireless technologies.

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