By Anirban Sen, Max A. Cherney, Milana Vinn and Mike Spector

(Reuters) – Qualcomm has explored the possibility of acquiring portions of Intel’s design business to boost the company’s product portfolio, according to two sources familiar with the matter.

The mobile chipmaker has examined acquiring different pieces of Intel, which is struggling to generate cash and looking to shed business units and sell off other assets, the people said.

Intel’s client PC design business is of significant interest to Qualcomm executives, one of the sources said, but they are looking at all of the company’s design units.

Other pieces of Intel such as the server segment would make less sense for Qualcomm to acquire, another source with knowledge of Qualcomm’s operations said.

Qualcomm has not approached Intel about a potential acquisition, an Intel spokesperson said. Intel is “deeply committed to our PC business,” the spokesperson said.

Qualcomm declined to comment.

Shares of Qualcomm slid as much as 1.3% and Intel rose 1% in U.S. pre-market trading on Friday. 

The $184 billion Qualcomm, which is known for chips found in smartphones and counts Apple as a customer, has been working on plans to buy pieces of Intel for months. Qualcomm’s interest and plans have not been finalized and could change, according to the sources.

The two sources declined to be named as they were not authorized to discuss the matter publicly.

Intel reported a disastrous second quarter last month, which included a 15% reduction in its staff and a pause on paying dividends. Executives are grappling with how to continue to fund the company’s manufacturing plans and generate cash.

Its PC client business revenue dropped 8% to $29.3 billion last year, amid overall weakness in the PC market.

Once known for its “Intel Inside” marketing campaign, Intel’s client group makes laptop and desktop chips used in machines around the world. Executives have said the introduction of artificial intelligence PCs will drive consumers to upgrade their computers and generate more sales.

Qualcomm generated $35.82 billion in overall revenue in its last fiscal year.

Earlier this week, Intel launched a new PC chip called Lunar Lake that its executives said offers superior performance for AI applications. Taiwan Semiconductor Manufacturing Co. fabricated significant portions of the chips, which Intel historically did in-house.

Intel’s board is set to meet next week to weigh a proposal from Intel CEO Pat Gelsinger and other executives on how to trim its operations in an attempt to save cash. Potential options include a sale of its programmable chip unit, Altera, Reuters reported.