NEW DELHI: India has emerged as the largest engineering base for American semiconductor giant Qualcomm – bigger than even home market US – as the company rides on high-end local technical talent as well as affordable costs to develop solutions that are deployed across global markets.
Such has been the success of the company’s work in India that Qualcomm is now looking to ramp up manpower and solution development across its key locations, country president Savi Soin said.
“I don’t want to say the number, but we have more engineers now in India than we have anywhere else in the globe… India is absolutely, essentially the core, (and) very, very important for Qualcomm,” Soin told TOI.

“For every one engineer or a team that we hire here, we have a lot of our partners coming up right next to us so that they can work closely with us in terms of specs, access to tech, partnerships, and so on and so forth. So, once we set up shop, a lot of our partners from the globe set up right next to us to get access to technology (and) work with us.”
The company has multiple development centres spread across Chennai, Bangalore, Hyderabad, and Noida. “I’d say they’re the best in class in terms of chip design, hardware, and software. We’ve been doing it for the globe for quite some time. We’ve been here for almost 20 years. It was all baby steps initially, but now they do a lot of work here,” Soin said, adding, “Some of the chips being used in India are actually completely designed here.”
On creating new jobs, he said the company is doing a “lot of hiring” in India. “You will see us hiring folks in our development centers as well as in the business teams… you’ll see us very active in India… we continue to hire the best and we continue to invest in the best.”
Asked about business prospects for Qualcomm in India, especially as digital has been growing rapidly, he said there are a variety of industries where the company expects opportunities. “India as a market has become very important for us… With 5G being pan-India, there is an opportunity around 5G devices and its use cases… We’re making 5G more affordable (and) accessible. The second thing is about connectivity at home. Here fixed wireless access becomes very important, so that people can get access to broadband. So, we’re partnering companies for launching fixed wireless at home. Third is about premiumisation in vehicles as people want rich displays, and rich functionality. We are working very closely with automakers in India to bring alive digital experiences, both in four- and two-wheelers.”
Soin said other areas critical for Qualcomm’s business include internet of things (IoT), point of sale terminals, and AI-based cameras, where the company can work out software and hardware solutions. “And then the one that we are probably most excited about is the AI computers, which – for example – can offer functionalities such as eye tracking, noise cancellation, natural language translation, etc.”

Qualcomm is working on the second generation of its Snapdragon X Elite processors for Windows computers, according to a report. The Arm-based chips are reportedly being developed under the codename ‘Project Glymur’ — a departure from its typical naming scheme. While the company’s plans for new versions of its midrange Snapdragon X Plus processors are currently under wraps, it is also said to be working on a new octa core desktop processor that could be the most affordable model in its existing lineup.

WinFuture reports that Qualcomm is working on new chipsets with the model number SC8480XP under the codename Project Glymur. It was spotted in the company’s international import-export databases and hints at the upcoming arrival of these processors, according to the publication.

The upcoming chips would reportedly be released with an updated Snapdragon X2 Elite branding. Qualcomm’s first-generation chips were all released with the model number SC8380XP, with up to 12 CPU cores with a peak clock speed of up to 4.3GHz.

The chipmaker trialled the first test platforms of the next-generation chipset in July and August. However, details specifications of the processors, such as the number of cores or peak clock speeds, is currently unknown. WinFuture also points out that Glymur is the first non-Hawaiian codename for a chipset from Qualcomm.

Meanwhile, Qualcomm is also reportedly working on a new first-generation Snapdragon X Plus chip — the X1P-24-100. This will be the most affordable processor in the company’s Snapdragon X series and sit under the octa core X1P-42-100, which offers the weakest performance in the lineup, according to the publication.

Arm Holdings approached Intel about potentially buying the ailing chipmaker’s product division, only to be told that the business isn’t for sale, according to a person with direct knowledge of the matter.

In the high-level inquiry, Arm didn’t express interest in Intel’s manufacturing operations, said the person, who asked not to be identified because the discussions were private. Intel has two main units: a product group that sells chips for personal computers, servers and networking equipment, and another that operates its factories.

Representatives for Arm and Intel declined to comment.

Intel, once the world’s largest chipmaker, has become the target of takeover speculation since a rapid deterioration of its business this year. The company delivered a disastrous earnings report last month — sending its shares on their worst rout in decades — and is slashing 15,000 jobs to save money. It’s also scaling back factory expansion plans and halting its long-cherished dividend.

As part of its turnaround efforts, Intel is separating the chip product division from its manufacturing operations. The move is aimed at attracting outside customers and investors, but it also lays the groundwork for the company to be split up — something Intel has considered, Bloomberg reported last month.

Arm, which is majority-owned by SoftBank Group Corp., makes much of its revenue selling chip designs for smartphones. But Chief Executive Officer Rene Haas has sought to broaden its reach outside of that industry. That’s included a push into personal computers and servers, where its chip designs are going up against Intel’s. Though Intel doesn’t have the technological edge it once held, the Santa Clara, California-based company remains dominant in those markets. 

Combining with Intel would help Arm’s reach and kick-start a move toward selling more of its own products. The company currently licenses technology and designs to customers, who then turn them into complete components. Its client list includes the biggest names in technology, such as Amazon.com, Qualcomm, and Samsung Electronics.

Under Haas, the company has moved more in the direction of offering fully formed products — potentially putting it in competition with its licensees.

Arm, based in Cambridge, England, only has a fraction of the revenue of Intel. But its valuation has soared since an initial public offering last year and now stands at more than $156 billion (roughly Rs. 13,05,862 crore). Investors see the company as a beneficiary of the AI spending boom, especially as it moves further into data center chips. Arm also has the backing of Japan’s SoftBank, which owns an 88 percent stake, potentially giving the company additional financial clout.

Intel, in contrast, has lost more than half its value this year and has a current market capitalization of $102.3 billion (roughly Rs. 8,56,344 crore). But the company has other options to consider. Apollo Global Management Inc. offered to make an investment in the company, Bloomberg reported this week. The firm indicated in recent days that it would be willing to put in as much as $5 billion, marking a vote of confidence for CEO Pat Gelsinger.

Intel also plans to sell part of its stake in semiconductor maker Altera Corp. to private equity investors. That business, which the chipmaker bought in 2015, was separated from Intel’s operations last year with the goal of taking it public. And speculation of a Qualcomm takeover boosted Intel shares in the past week.

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A potential deal to buy Intel could accelerate Qualcomm’s diversification but will burden the smartphone chipmaker with a loss-making semiconductor manufacturing unit that it may struggle to turn around or sell, analysts said.

A buyout will also face tough antitrust scrutiny globally as it would unite two crucial chip firms in what would be the sector’s biggest ever deal, creating a behemoth with a strong share of the smartphone, personal computer and server markets.  

Shares of Intel rose nearly three percent on Monday, after media reports late on Friday about Qualcomm’s early-stage approach for the struggling chipmaker. Qualcomm’s shares were down 1.8 percent. 

“The rumored deal between Qualcomm and Intel is intriguing on many levels and, from a pure product perspective, makes a certain degree of sense as they have a number of complementary product lines,” said TECHnalysis Research founder Bob O’Donnell.

“The reality of it actually occurring, however, is very low. Plus, it is unlikely Qualcomm would want all of Intel and trying to break apart the product business from the foundry business right now just would not be possible,” he said.

Once the dominant force in the semiconductor industry, five-decade-old Intel is facing one of its worst periods as losses mount at the contract manufacturing unit it is building out in hopes of challenging TSMC. 

Intel’s market value has fallen below $100 billion (roughly Rs. 8,36,313 crore) for the first time in three decades as the company has missed out on the generative AI boom after passing on an OpenAI investment. 

As of last close, its market capitalisation was less than half that of potential suitor Qualcomm, which has a value of about $190 billion (roughly Rs. 15,88,934 crore).

Considering Qualcomm had around $7.77 billion (roughly Rs. 64,980 crore) in cash and cash equivalents as of June 23, analysts expect the deal will mostly be funded through stock and would be highly dilutive for Qualcomm’s investors, likely raising some apprehension.

Qualcomm, which also supplies to Apple, has quickened its efforts to expand beyond its mainstay smartphone business with chips for industries including automotive and PCs under CEO Cristiano Amon. But it still remains overly reliant on the mobile market, which has struggled in recent years due to the post-pandemic demand slump.

Amon is personally involved in the Intel negotiations and has been examining various options for a deal for the company, sources have told Reuters.     

This is not the first time Qualcomm is pursing a large acquisition. It had offered to buy rival NXP Semiconductors for $44 billion (roughly Rs. 3,67,973 crore) in 2016, but abandoned the bid two years later after failing to secure a nod from Chinese regulators.

Foundry Conundrum 

While Intel designs and manufactures its chips that power personal computers and data centers, Qualcomm has never operated a chip factory. It uses contract manufacturers such as TSMC and designs and other technology supplied by Arm Holdings. 

Qualcomm lacks the experience needed to ramp up Intel’s fledgling foundry business, which recently named Amazon.com as its first major customer, according to analysts. 

“We do not know why Qualcomm would be a better owner for those assets,” said Stacy Rasgon of Bernstein. 

“We do not really see a scenario without them either; we do not think anyone else would really want to run them and believe scrapping them is unlikely to be politically viable,” he added.

Intel’s foundry business is seen as crucial to Washington’s goal of growing domestic chip manufacturing. The company has secured about $19.5 billion (roughly Rs. 1,63,079 crore) in federal grants and loans under the CHIPS Act to build and expand factories across four US states. 

Some analysts said Intel would prefer outside investments instead of a sale, pointing to a recent move to make the foundry business more independent. 

Bloomberg News reported over the weekend that Apollo Global Management, already a partner in Intel’s Ireland facility, has offered an investment of as much as $5 billion (roughly Rs. 41,814 crore) in the company.

Qualcomm could also decide to buy parts of Intel’s business, instead of the entire company. Reuters had reported earlier this month that it had particular interest in Intel’s PC design unit.

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Apollo Global Management has offered to make a multibillion-dollar investment in Intel, according to people familiar with the matter, in a move that would be a vote of confidence in the chipmaker’s turnaround strategy.

The alternative asset manager has indicated in recent days it would be willing to make an equity-like investment of as much as $5 billion (roughly Rs. 41,753 crore) in Intel, said one of the people, who asked not to be identified discussing confidential information. Intel executives have been weighing Apollo’s proposal, the people said. 

Nothing has been finalised, the size of the potential investment could change and discussions could fall through, resulting in no deal, the people added.  

The development comes as San Diego-based Qualcomm floats a friendly takeover of Intel, people with knowledge of the matter said on Saturday, raising the prospect of one of the biggest-ever M&A deals.

Representatives for Apollo and Intel declined to comment. 

Under Chief Executive Officer Pat Gelsinger, Intel has been working on an expensive plan to remake itself and bring in new products, technology and outside customers.

That initiative has led to a series of worsening earnings reports that have undermined confidence in the initiative and knocked tens of billions of dollars off its market value. While Apollo may best be known today for its insurance, buyout and credit strategies, the firm started out in the 1990s as a distressed-investing specialist.

The companies already have a relationship. Santa Clara, California-based Intel agreed in June to sell a stake in a joint venture that controls a plant in Ireland for $11 billion (roughly Rs. 91,857 crore) to Apollo, bringing in more external funding for a massive expansion of its factory network. 

Apollo also has other experience in the chipmaking space. Last year, the New York-based firm agreed to lead a $900 million (roughly Rs. 7,515 crore) investment in Western Digital Corp., buying convertible preferred stock. 

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