Qualcomm recently approached Intel to explore a potential acquisition of the troubled chipmaker, a source familiar with the situation said, in what could be a transformational deal in the sector but faces many hurdles.

Qualcomm is a popular figure in the smartphone industry, thanks primarily to its Snapdragon series of chipsets that power both midrange and flagship phones. The company's reach ex

Qualcomm is reportedly in early talks for a potential acquisition of Intel, valued at $122 billion. Despite Intel’s declining performance, Qualcomm believes an all-American merger might ease antitrust concerns.

The Wall Street Journal reported Friday that San Diego-based wireless giant Qualcomm has approached Intel about a possible takeover of the ailing chip maker.

Intel's shares reversed course to rise 8%, while Qualcomm fell 4% in afternoon trade. Intel has been attempting to turn its business around by focusing on its chip foundry unit and artificial intelligence processors,

The conversations with Intel are at an early stage. The San Diego-based company has not made a formal offer for Intel, according to third person familiar with the matter. The sources requested anonymity as the discussions are confidential. Intel declined to comment. Qualcomm did not immediately respond to a request for comment.

Qualcomm did not immediately respond to a Reuters request for comment. The approach by Qualcomm comes at a moment of weakness for Intel, which was once the most valuable chipmaker in the world, but whose shares have lost nearly 60 per cent of their value since the start of the year.

Qualcomm Inc. has approached Intel Corp. to discuss a potential acquisition of the struggling chipmaker, people with knowledge of the matter said, raising the prospect of one of the biggest-ever M&A deals.

Intel, once the world’s largest chipmaker, has been struggling with flagging sales and mounting losses — exacerbated by the loss of its technological edge.