Qualcomm Inc (NASDAQ:QCOM) postponed its strategic offer for Intel Corp (NASDAQ:INTC) until after the November presidential election. Additionally, the Cybersecurity Association of China (CSAC) decided to probe Intel’s products sold in China, citing a national security threat weighing on the U.S. chipmaker’s stock price Wednesday.

Qualcomm gained time to enhance transparency in its leadership, a key factor in the ongoing antitrust regulations and geopolitical dynamics with China, according to sources cited by Bloomberg.

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Qualcomm agreed to defer its plans till the new U.S. president took charge in January.

Qualcomm and Intel’s combination will likely draw antitrust scrutiny, considering their influence in the digital framework supporting everyday life, including smartphones and electric vehicles. China is also a key market for both Qualcomm and Intel.

In September, Qualcomm made a preliminary approach to Intel on a possible takeover.

Benchmark analyst Cody Acree considered the Qualcomm-Intel deal unlikely, citing a substantial financial burden and regulatory scrutiny for Qualcomm.

Many such attempted deals, including Qualcomm-NXP Semiconductors NV and Nvidia Corp–Arm Holdings plc, succumbed to global regulatory opposition.

Meanwhile, CSAC’s scrutiny of Intel could prompt a security review from China’s cyberspace regulator, the Cyberspace Administration of China (CAC), Reuters reports. China’s move marks its retaliation against U.S. artificial intelligence technology sanctions that have restricted China’s access to sophisticated AI chips from companies like Nvidia, citing national security risks.

KeyBanc analyst John Vinh flagged Intel’s server market share loss to Advanced Micro Devices, Inc (NASDAQ:AMD). He also flagged the lack of a cheaper AI CPU targeted at mass-market AI PCs and the ramp of Nvidia’s Blackwell as further headwinds for Intel.

Intel stock plunged over 38% in the last 12 months as it failed to capitalize on the shift to artificial intelligence.

Conversely, Intel bagged a chipmaking deal from Amazon Web services. Intel is also a key contender for the Biden government’s chip subsidy, rendering the political support critical for Intel.

Investors can gain exposure to Intel through iShares Core S&P 500 ETF (NYSE:IVV) and Vanguard S&P 500 ETF (NYSE:VOO).

Price Action: INTC stock is down 3.3% at $21.90 at last check Wednesday.

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