Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Chipmaker Qualcomm approached its struggling rival Intel about a potential takeover in recent days, according to two people familiar with the matter. A deal is far from certain and no formal offer has been made, according to people with knowledge of the approach. A person close to Qualcomm said the chipmaker would only pursue a friendly deal, and people with knowledge of Intel’s thinking said the company harbours concerns that a deal would be stymied by antitrust regulators. A full takeover of Intel would top Microsoft’s $69bn acquisition of Activision as the largest technology deal in history. Intel’s market capitalisation was $93bn on Friday after its share price jumped 8 per cent following an initial report on Qualcomm’s approach by The Wall Street Journal. Once the world’s largest chipmaker, Intel’s years-long fall from grace has accelerated in recent months. The company lost nearly $30bn in market value in August after a disastrous earnings report in which chief executive Pat Gelsinger announced 15,000 job cuts and scrapped its dividend.Intel’s share price has declined 50 per cent since the start of this year, putting the company on the defensive about the risk of approaches from potential bidders and the threat of hostile shareholders. Intel is working with Goldman Sachs and Morgan Stanley to evaluate Qualcomm’s approach, people with knowledge of the matter said. For several months investment bankers from Morgan Stanley have been advising it on how to defend itself from activist investors, a move previously reported by CNBC.Intel is considering a wide range of asset sales, people familiar with the company’s thinking said. Qualcomm raised the possibility of a full takeover of Intel after exploring an acquisition of several Intel assets, people familiar with the matter said, confirming an earlier report by Reuters.Unlike Intel, Qualcomm does not build its own chips and instead outsources production to outside manufacturers. Qualcomm, which has a $188bn market capitalisation, is working with investment bank Evercore to evaluate its approach to Intel. It is unclear how it would fund a wholesale takeover of Intel, or whether it would divest assets as part of a takeover. A deal is likely to face intense antitrust scrutiny and political concerns over national security. Should a deal go forward, it would be pitched to US regulators as a bid to strengthen American chipmakers in their race to compete with Chinese manufacturers, according to people familiar with the matter. The people cautioned that a lengthy acquisition process could cause the chipmakers to fall behind foreign rivals, a concern that may scuttle a deal.Intel and Goldman Sachs declined to comment. Morgan Stanley, Evercore and Qualcomm did not immediately respond to requests for comment. The approach adds to mounting pressure on Gelsinger, who was appointed in 2021 and is three years into a five-year turnaround plan to transform Intel into a chip manufacturer that rivals industry leader Taiwan Semiconductor Manufacturing Company. The company has hit several stumbling blocks along the way: high profile executives have departed, including industry veteran Lip-Bu Tan who left the company’s board. Intel has also lagged rivals Nvidia and AMD in sales of artificial intelligence chips to data centres.Intel shareholders would probably balk at a sale to Qualcomm, analysts at Citi argued in a note published on Friday. They said Intel should instead exit its semiconductor manufacturing business “as we believe the company has a very small chance of becoming a profitable leading-edge foundry”. Takeover talks are “almost too silly to comment on”, they wrote.

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