Qualcomm CEO Reportedly Says Intel’s Chip-Making Technology Not Good Enough Yet

Qualcomm Inc. (QCOM) CEO Cristiano Amon reportedly stated on Friday that Intel Corp.’s (INTC) chip-making technology is not yet good enough for the company to consider it as a potential supplier.

Amon said in an interview with Bloomberg that Qualcomm could eventually consider Intel if the 57-year-old company can churn out more efficient chips.

“Intel is not an option today. We would like Intel to be an option,” Amon said, according to the report. Amon added that Qualcomm will stick to its existing suppliers, Taiwan Semiconductor Manufacturing Co. (TSM) and Samsung Electronics Co. (SSNLF) for now.

Qualcomm’s shares edged lower by 0.14% in Friday’s midday trade, while Intel’s shares were down 1.26%. Retail sentiment on Stocktwits around Qualcomm trended in the ‘bullish’ territory, while users felt ‘bearish’ about Intel.

Qualcomm is a fabless chip designer, and it outsources the manufacturing of its chips to companies like TSMC and Samsung. Intel, on the other hand, designs and manufactures its own chips. However, as part of its turnaround efforts, the chip maker is trying to attract customers like Qualcomm.

Intel’s struggles with manufacturing processes and inability to overcome defects led former CEO Pat Gelsinger to gamble on the 18A fabrication process. He famously said once that he’d “bet the whole company on 18A” – a gamble that did not pay off and led to his ouster in December.

In August, the Trump administration announced that the U.S. government had picked up a 10% stake in Intel in exchange for CHIPS Act funding. Intel CFO David Zinsner subsequently said the company received $5.7 billion from the government.

QCOM stock is up 4% year-to-date, while INTC stock is up 21%.

Also See: Broadcom, Tesla, Lululemon, UiPath, Samsara: Stocks Making The Biggest Moves Today

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