Apple and Samsung in the Fray to Acquire Intel: Rumor

[btarunr]

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.



View at TechPowerUp Main Site | Source

 

[FoulOnWhite]

Rumor is correct, Intel will never be aquired imo, and certainly not by anything but a US buyer.

 

[watzupken]

Its funny why both Apple and Qualcomm would be interested in Intel when their ARM based SOC are doing well. I personally don't feel that they are after the foundry business because it is not really in a good state at this point. The acquirer will have to foot the hefty bills for the foundry business until they can somewhat turn it around.

Rumor is correct, Intel will never be aquired imo, and certainly not by anything but a US buyer.

When it is not under financial distress, it is possible that regulators may block it, especially if the acquirer is not a US company. But at the current state, the nation will have to either be the acquirer (i.e. a takeover if Intel goes under), or they need to merge it with another US company to avoid having to throw taxpayers' money to keep it running.

 

[usiname]

Its funny why both Apple and Qualcomm would be interested in Intel when their ARM based SOC are doing well. I personally don't feel that they are after the foundry business because it is not really in a good state at this point. The acquirer will have to foot the hefty bills for the foundry business until they can somewhat turn it around.

I don't know for Samsung, but Apple for sure has enough money to make the fabs to work

 

[Sunlight91]

They should sell Intel to China or Russia for the extra geopolitical fun factor.

 

[Outback Bronze]

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

A superior once told me "Stick to what your good at" a.k.a. i7 2600k.

 

[londiste]

I don't know for Samsung, but Apple for sure has enough money to make the fabs to work

Is making fabs work a question of money?
As a totally unrelated note - Intel is still pouring over $15 billion a year into R&D. Majority of that goes to foundries.

 

[Daven]

Rumor is correct, Intel will never be aquired imo, and certainly not by anything but a US buyer.

Reality tends to be different than personal preference.

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.

 

[DeathtoGnomes]

Say your goodbyes now while you still can. IF Qualcomm buys not much will change compared to what would happen if Apple buys. Samsung is a foreign company and would never get approved, imo.

 

[csendesmark]

The US government will never let a company from an other country to buy a strategically important company such as Intel.
Even if they doing so bad at this time.
Apple it is. if it comes down to this two.

 

[Daven]

I don't know for Samsung, but Apple for sure has enough money to make the fabs to work

Apple loves to be vertically integrated so owning their own fabs would follow this trend.

 

[Dristun]

I can see Apple doing that just to get the fabs and a treasure trove of IP. As mentioned before, fabs alone, even considering required continued investments, are most likely worth more than Intel's entire business at the current stock price.

 

[StimpsonJCat]

I can't see Apple doing anything good for the consumer if they acquire Intel, neither can I see Samsung doing good with it. Not good companies at all.

 

[AleksandarK]

Journalistic duties aside (its our job to report on this) such a thng is never going to happen. Regulatory would never approve this, nor is Intel looking for a buyer.

 

[StimpsonJCat]

I can see Apple doing that just to get the fabs and a treasure trove of IP. As mentioned before, fabs alone, even considering required continued investments, are most likely worth more than Intel's entire business at the current stock price.

That is exactly the same benefits to Samsung.

 

[Dristun]

Journalistic duties aside (its our job to report on this) such a thng is never going to happen. Regulatory would never approve this, nor is Intel looking for a buyer.

Intel's interest in selling itself is another matter though, you're right.

 

[Daven]

Journalistic duties aside (its our job to report on this) such a thng is never going to happen. Regulatory would never approve this, nor is Intel looking for a buyer.

I have to disagree here. There is a huge bias from all us tech enthusiasts on this topic. Intel getting bought out is too big of a change in reality for many of us to think about or accept.

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.

 

[Shihab]

I have to disagree here. There is a huge bias from all us tech enthusiasts on this topic. Intel getting bought out is too big of a change in reality for many of us to think about or accept.

This.
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.

 

[Caring1]

If Intel had potential, surely Softbank would be interested.

 

[Daven]

The news keeps piling on. Pat paints a bleak picture for Intel’s roadmap during conference call.

Intel Panther Lake to launch in second half of 2025, no more Memory on Package in future products - VideoCardz.com

Intel wants to simplify roadmaps with fewer products, bring more wafers home for better margins Following the disclosure of Q3 2024 earnings, Intel CEO Pat Gelsinger shared some insights on upcoming client CPU plans, though he offered little on graphics. Gelsinger confirmed that the recently...

videocardz.com

Scaled down GPU plans
Too many SKUs
No more memory on package
Low Xeon sales

 

[kondamin]

If Intel had potential, surely Softbank would be interested.

Looking at softbank's history, them buying it would mean intel is really doomed

 

[TF-GrayWizard]

What a lot of people seem to forget is the cross-licensing agreement Intel has with AMD for things such as x86_64 IPs that I'm pretty sure gets totally nullified if either AMD or Intel get bought out so any company that could swallow up Intel would likely spend way more time and a boat load of money re-negotiating such a deal.

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.

 

[Caring1]

Looking at softbank's history, them buying it would mean intel is really doomed

Yep, stripped down and parted out.

 

[RGAFL]

I would look more at the rumours of AMD and Intel merging. Apparently US gov officials are trying to push that as an option. Could be a good option for both. But would AMD who are probably quite happy with the way things are go for it?

 

[Squared]

I can't help but think that tech news was much higher quality in 2015 when everyone thought AMD would fail. When articles talked about AMD getting bought out they came with information about AMD's x86 patent and said that an AMD sale would not transfer the x86 license to a new company. Intel owns the x86 patent, but AMD owns the x86-64 patent, and I imagine AMD placed the same ruled on Intel. That 64-bit ISA patent is essential for Intel's business.

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.