qualcomm is rumored to acquire intel, and all parties are closely watching the progress of the event
2024-09-24
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qualcomm is rumored to acquire intel, and all parties are closely watching the progress of the event
over the past weekend, the news that the us chip giant qualcomm intends to acquire intel, another chip giant that is currently in deep trouble, set off the entire industry. the news was first revealed by the wall street journal last friday, and intel's stock price immediately ushered in a wave of rebound, jumping 8% by the close of us stocks last friday. the wall street journal said that qualcomm had recently expressed its intention to acquire intel. however, the financial times of the united kingdom later disclosed that qualcomm's acquisition of intel is far from certain, and qualcomm has never "officially" expressed information about the acquisition.
how feasible is the acquisition?
intel's shares have fallen 50 percent since the beginning of the year, leaving the company to deal with risks from potential acquirers and threats from hostile shareholders.
according to several financial media reports, intel's current market value is $93 billion. if qualcomm really acquires intel, the deal is expected to surpass microsoft's $69 billion acquisition of american game company activision blizzard, becoming the largest acquisition in the history of the technology industry. according to the financial times, sources revealed that intel is evaluating qualcomm's acquisition intention with goldman sachs and morgan stanley. other sources also said that intel is indeed considering various asset sales plans, and qualcomm is considering acquiring several different assets under intel and ignited the idea of acquiring intel as a whole. qualcomm currently has a market value of $188 billion and is said to be working with evercore investment bank to evaluate what strategy to take next for intel.
intel announced the postponement of the construction of the factory. the picture shows its construction site in magdeburg, germany. (visual china)
axios news network of the united states analyzed that qualcomm's acquisition of intel will face huge challenges. first, mergers and acquisitions require huge amounts of money, but qualcomm has not yet disclosed the source of the funds for the merger. however, the biggest challenge facing qualcomm's acquisition of intel will come from antitrust regulators. in 2017, chip giant broadcom tried to acquire qualcomm, but then-us president trump blocked the deal in 2018 on the grounds of national security. axios even predicted that once qualcomm officially starts the acquisition process for intel, this deal will surely become the most important antitrust case on the desk of the new president who will take office after the us presidential election in november this year.
just as the news of intel's possible acquisition was spreading, bloomberg news quoted a source on the 22nd saying that apollo global management has proposed to invest in intel, and the investment scale may be as high as us$5 billion. some media interpreted this move as a vote of confidence in intel's "turnaround".
how the “dominant company” became the target of acquisition
although the rumors have not been confirmed, the predicament intel is in is real. intel was once the world's top chip company, but has gradually declined in recent years, especially in the era of artificial intelligence (ai) and has been left behind by nvidia.
reuters once revealed that intel had hoped to gain an advantage in the ai competition, but it gave up the opportunity. sources revealed that seven years ago, intel had contacted openai, which had just been established and was unknown at the time, and the two sides negotiated for several months on intel purchasing 15% of openai's shares for $1 billion in cash. one of the important reasons why intel finally decided to give up the deal was that swan, then intel ceo, believed that it would be difficult to put the ai model into the market in the short term and that it would be difficult to get a return on investment.
intel executives and industry experts said in interviews that giving up cooperation with openai was a "strategic misfortune" for intel, and a series of "strategic misfortunes" over the years have also caused intel, a top company in the pc era, to stumble in the era of artificial intelligence. the wall street journal pointed out that intel had actually encountered some setbacks in chip manufacturing before the advent of the artificial intelligence boom. the chip technology of its competitor nvidia was highly compatible with the needs of artificial intelligence, while intel's technology was ignored.
intel suffered a huge loss of $1.6 billion in the second quarter of this year, launched large-scale layoffs in august, and earlier this month was exposed to have proposed a business restructuring plan in an attempt to save itself. a former intel board member told reuters that these measures taken by the company were not strong enough and came too late.
vibration industry
all parties are also paying close attention to and evaluating the impact of this potential acquisition on the industry in advance. american business media fast company analyzed on the 21st that qualcomm, which currently focuses on mobile phone chips, needs to promote business diversification. after acquiring intel, it will immediately become the largest pc and server processor manufacturer and will obtain a chip manufacturing plant that it has never had. because of this, taiwan is paying close attention to this potential acquisition.
however, taiwan's economic daily news believes that even if qualcomm acquires intel, it will not recover the chip orders released to tsmc, because intel's technology and yield are far inferior to tsmc, so this acquisition will have little impact on tsmc. fast company also pointed out that although qualcomm's acquisition of intel will form a large chip company, the combination of the two companies will still be difficult to challenge nvidia, the leader in artificial intelligence chips, in terms of technology.
fast company.com said that in the context of the development of so-called "edge ai technology", qualcomm may see an opportunity to defeat nvidia, which does not have mobile ai chip technology, by deploying ai technology on local mobile devices. intel has strong strength in chip packaging, which may help qualcomm create more powerful mobile ai chips. this may be qualcomm's more far-reaching consideration for acquiring intel.
(source: huanqiu.com)
