Friday, November 1st 2024
Apple and Samsung in the Fray to Acquire Intel: Rumor
Apple and Samsung are reportedly in the fray to acquire Intel, according a spectacular rumor cited by Moore's Law is Dead. This would put the list of companies looking to acquire Intel at 3—Apple, Samsung, and Qualcomm. All three are Arm licensees, with unique characteristics. Apple currently has an Arm-based SoC hardware division that makes custom chips for all its devices, including Macs. Samsung would go on to be an overseas parent company for an American heritage company like Intel, but something like this is not unheard of when you consider examples such as Boston Dynamics being acquired by Hyundai Motors, or Westinghouse Nuclear's acquisition by Japan's Toshiba, before changing hands to Canadian Bookfield Partners. Then there's Qualcomm—the American company is having a bit of a falling out with Arm, and the prospect of owning the x86 IP should be tempting.
Intel retains large amounts of market-share in both the PC processor and server processor markets, however, the company's stock price has been on a downward trend for several quarters now, causing its valuation to drop to levels where any of the other big tech companies can afford to buy it out. The company spent close to $10 billion on a GPU architecture project spanning not just a contemporary graphics architecture to power the integrated graphics solutions of its PC processors, but also discrete gaming GPUs; and most importantly, an AI GPU architecture under the "Ponte Vecchio" project. Intel's Xe-HP AI GPU missed its performance targets or was too late to the market, leaving Intel with a gaping hole that it could only fill with a slew of cost-cutting measures. It doesn't help that Intel Foundry is losing its edge, and none of the logic tiles of Core Ultra "Arrow Lake" processor is made on an Intel foundry node.
Sources:
Moore's Law is Dead (YouTube), Tom's Guide
Intel retains large amounts of market-share in both the PC processor and server processor markets, however, the company's stock price has been on a downward trend for several quarters now, causing its valuation to drop to levels where any of the other big tech companies can afford to buy it out. The company spent close to $10 billion on a GPU architecture project spanning not just a contemporary graphics architecture to power the integrated graphics solutions of its PC processors, but also discrete gaming GPUs; and most importantly, an AI GPU architecture under the "Ponte Vecchio" project. Intel's Xe-HP AI GPU missed its performance targets or was too late to the market, leaving Intel with a gaping hole that it could only fill with a slew of cost-cutting measures. It doesn't help that Intel Foundry is losing its edge, and none of the logic tiles of Core Ultra "Arrow Lake" processor is made on an Intel foundry node.
46 Comments on Apple and Samsung in the Fray to Acquire Intel: Rumor
As a totally unrelated note - Intel is still pouring over $15 billion a year into R&D. Majority of that goes to foundries.
The writing is on the wall for Intel. It’s just a matter of time. I predict by the end of 2025 a major shakeup will happen at Intel.
Even if they doing so bad at this time.
Apple it is. if it comes down to this two.
No regulatory entity will block such a deal if it means closing down fabs and 100% firing all Intel employees. And no US government body has the stomach to fully own any company for long.
National security aside, in the end it comes down to capitalism. If Intel falls low enough, it can and will be bought. End of story.
Every time I read something about someone acquiring Intel, especially those mobile-first companies, my heart stops for second, even though the latest intel proc I have is a 7th gen.
At some point, we'll have to reach the "f*** it!" stage. Can't be worse than contemporary Intel.
videocardz.com/newz/intel-panther-lake-to-launch-in-second-half-of-2025-no-more-memory-on-package-in-future-products
Scaled down GPU plans
Too many SKUs
No more memory on package
Low Xeon sales
Not to mention the spanner in the works that the termination of such a agreement might throw out to both sides on top of any other regulatory business issues if intel was to be bought out.
Selling the foundry business might make more sense. After the launch of Lunar Lake on TSMC N3P and Arrow Lake on TSMC N3B and Granite Rapids and Sierra Forest on Intel 3, I'm convinced that Intel foundries are better than is commonly thought and Intel designs are worse. Intel needs its foundries, so selling them would be a last resort. Partly selling them could be an option though. Maybe Apple and Qualcomm and Samsung would each get a 25% share. If I were Intel I wouldn't give Samsung a share without also getting some control over Samsung foundries.
What I'm sure is true is that Intel and Samsung are considering a foundry alliance and Intel is trying to convince Apple and Qualcomm to use the 18A node and pay for some of it up front.