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Qualcomm approach Intel on a potential takeover

kevin01 said:
I agree that U.S. is probably OK with it. But the regulatory body which killed a lot of recent semi M&As is in China.
Click to expand...
I think US would force it to go through if it happens. The combined entity would be a US version of Huawei.

merics.org

Huawei is quietly dominating China’s semiconductor supply chain

Huawei is emerging as the leader of China’s national team in semiconductors, dominating chip manufacturing and seeking to integrate the country’s entire supply chain. Its ambitions stem from both its placement on the US Entity List and strong government support at the national and local level...
merics.org merics.org
 
XYang2023 said:
Click to expand...
Seriouslly, I don't see China would OK this deal, especially for qcom and intc, which were not exactly deemed "friendly" to them. They killed qcom/nxp deal, then killed intc/tower deal. I don't know what hock tan did to make them approve the avgo/vmw deal, though.

If I were qcom ceo, I would seek a deal that does not need China's blessing. If qcom only want to buy mbly, which actually makes sense, does that deal need to be reviewed by Chinese and EU regulators?
 
tooLongInEDA said:
Mad. Though there are no doubt Wall Street types pushing for a deal involving Intel (any deal for these guys). And an active market for such rumours these days. Only makes sense for the bankers and lawyers taking their cut.

Antitrust: if nVidia were't allowed to buy ARM (a critical industry supplier), why on earth would Qualcomm be permitted to own IFS (since that's now the designated US domestic foundry - the CHIPS Act says so, regardless of whether it has any market share yet, it's only getting the money on the basis that it will be) ?

Intel needs more chaos like a hole in the head. Too much hokey cokey strategy over the past decade (let's buy WindRiver/MobileEye/Altera ... no let's sell them ... let's hire 20K more staff ... hold on we're 20K overstaffed ...). Just stick at something.
Click to expand...
Frankly, Intel board may be finally coming to a realization that P.G. will not be able to fix Intel. So they can hire a new CEO or acquihire a new one through a merger.
 
Let’s test this shall we.

If Intel and 18A and on are to be successful they must have many customers more than Qualcomm and Intel products. The claim of course now is government, AWS maybe land Broadcom, Nvidia or other whales. If Qualcomm owns them they’d have a real problem courting anyone including Apple
XYang2023 said:
I think US would force it to go through if it happens. The combined entity would be a US version of Huawei.

merics.org

Huawei is quietly dominating China’s semiconductor supply chain

Huawei is emerging as the leader of China’s national team in semiconductors, dominating chip manufacturing and seeking to integrate the country’s entire supply chain. Its ambitions stem from both its placement on the US Entity List and strong government support at the national and local level...
merics.org merics.org
Click to expand...
Qualcomm + Intel is no Huawei as Huawei doesn’t do chip manufacturing
 
Guys think about it, EMC, VMWare, now Intel

The same man, Pat Gelsinger

Some very strong synergies like Qualcomm wafer for IFS

I think it goes through
 
kevin01 said:
Seriouslly, I don't see China would OK this deal, especially for qcom and intc, which were not exactly deemed "friendly" to them. They killed qcom/nxp deal, then killed intc/tower deal. I don't know what hock tan did to make them approve the avgo/vmw deal, though.

If I were qcom ceo, I would seek a deal that does not need China's blessing. If qcom only want to buy mbly, which actually makes sense, does that deal need to be reviewed by Chinese and EU regulators?
Click to expand...
I don't think AVGO/VMW have that big of influence like QCOM and INTC does.
 
BruceA said:
Let’s test this shall we.

If Intel and 18A and on are to be successful they must have many customers more than Qualcomm and Intel products. The claim of course now is government, AWS maybe land Broadcom, Nvidia or other whales. If Qualcomm owns them they’d have a real problem courting anyone including Apple

Qualcomm + Intel is no Huawei as Huawei doesn’t do chip manufacturing
Click to expand...
www.huaweicentral.com

U.S. ban helping Huawei to achieve self-reliance in chip tech: Rotating Chairman

Xu Zhijun – the Rotating Chairman of Huawei believes that the tough U.S. ban is ultimately helping the company to grow in the chip tech field. Such challenges push the firm to become self-reliant in AI, computing power, and the semiconductor field. On September 20, Huawei hosted the Connect 2024...
www.huaweicentral.com www.huaweicentral.com

I think it does to some extent.
 
delong.height said:
I think the benefits here to Qualcomm is huge. It's worthy it for Cristiano Amon to try despite the antitrust legislature.
Click to expand...

I think Qualcomm would do well acquiring the Intel design group and Mobileye and possibly Altera. I do not think QCOM should get into the foundry business. Qcom is a leading edge company requiring leading edge silicon and that is TSMC. Wafer cost is also an issue for QCOM which is why they use Samsung whenever possible. QCOM is now at the Apple/AMD/Nvidia level with TSMC and I do not see that changing for their leading edge SoCs.

Thoughts?
 
Daniel Nenni said:
I think Qualcomm would do well acquiring the Intel design group and Mobileye and possibly Altera. I do not think QCOM should get into the foundry business. Qcom is a leading edge company requiring leading edge silicon and that is TSMC. Wafer cost is also an issue for QCOM which is why they use Samsung whenever possible. QCOM is now at the Apple/AMD/Nvidia level with TSMC and I do not see that changing for their leading edge SoCs.

Thoughts?
Click to expand...
I mean if that is case, Intel shareholders would rather prefer Intel stops its foundry efforts and let PG step down.

There are three options:
1. Take the design part
2. Take (part-take) the manufacturing part
3. Take the whole

According to analysts at Citi, Intel shareholders are likely to oppose a sale to Qualcomm. Instead, the analysts suggest that Intel should consider leaving the semiconductor manufacturing sector, as they believe the company has minimal prospects of becoming a profitable leader in this area.

www.ft.com

Qualcomm has approached Intel about takeover bid

No formal offer made but deal could become biggest tech acquisition in history
www.ft.com www.ft.com
 
Last edited:
XYang2023 said:
I mean if that is case, Intel shareholders would rather prefer Intel stops its foundry efforts and let PG step down.

There are three options:
1. Take the design part
2. Take (part-take) the manufacturing part
3. Take the whole

According to analysts at Citi, Intel shareholders are likely to oppose a sale to Qualcomm. Instead, the analysts suggest that Intel should consider leaving the semiconductor manufacturing sector, as they believe the company has minimal prospects of becoming a profitable leader in this area.

www.ft.com

Qualcomm has approached Intel about takeover bid

No formal offer made but deal could become biggest tech acquisition in history
www.ft.com www.ft.com
Click to expand...
I don't think it will be possible after going all in on semi manufacturing signing contracts with government
How many of you think it is misleading ? They may be buying some part of some intel buisness
 
Last edited:
siliconbruh999 said:
Yes but it is crucial to US government as well and also their market value is too low comparing to the Book value
Click to expand...
The valuation of the company is based on the discounted expected cash flows.

Selling parts of the business does not make sense. The fundamental issue is the foundry business that is losing money. It is like repairing the internal plaster due to a leaky roof.

To solve the underlying issue, they either need to make the foundry work or get rid of it. In this case, by combining Intel and Qualcomm, the scale might address the foundry business.

Also, the US government is not helping. First, they need to be proactive with the funding. Foundry build-out requires significant capital expenditures, and timely subsidy payments are crucial. Secondly, they need to introduce auxiliary measures such as tariffs to encourage companies to use domestic leading-edge productions. With news frequently reporting the shareholdings of Nvidia by Nancy Pelosi, and the news of banning Intel from exporting client chips to Huawei, I have serious doubts about what the US government is doing.
 
The way I see it (as a former Intel employee):
Separate the company in 2:
1. Technology Development and Manufacturing as one spin-off company (aka Foundry);
2. The Design of CPU/GPU and AI, etc. as the rest to be acquired by QUALCOMM.
 
Intel Tower a fail, Nvidia ARM failed, AMAT Kokusai a fail.


I believe of the tech embargo against Huawei and tools against SMIC had never occurred none of this mergers would have been blocked by China, but it is easy to see why they were blocked.
 
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