Asia Tech Wire (Sep 23) -- An analyst said the acquisition of Intel is a disaster for Qualcomm.

The Wall Street Journal previously reported that Qualcomm approached Intel about a takeover.

Intel, once the world's largest chipmaker, is struggling to cope with weak sales and expanding losses.

The company's market capitalization is currently less than $100 billion, about half that of Qualcomm.

Still, the acquisition would be the biggest deal ever in the semiconductor market and could change the entire industry.

In this regard, Ming-Chi Kuo, a well-known Apple analyst, said that the acquisition of Intel will only help Qualcomm's AI PC chip business, but it will put great financial pressure on Qualcomm, and will have an immediate negative impact on profitability.

Considering the antitrust investigations in various countries, he believes that the merger and acquisition will be difficult to complete in the short term.

Kuo emphasized that if the merger and acquisition occurs, this can be said to be a disaster for Qualcomm.

"My survey and understanding suggest that Qualcomm has also expressed a conservative attitude towards acquiring Intel in internal discussions, "he added.

Kuo also said, "This lends credence to a rumor I've heard: Qualcomm is cautiously exploring the possibility of acquiring Intel, driven by external pressures beyond its control."