You are currently viewing SemiWiki as a guest which gives you limited access to the site. To view blog comments and experience other SemiWiki features you must be a registered member. Registration is fast, simple, and absolutely free so please, join our community today!
We thought of this the other day when speaking with an investor about Intel and the potential for someone to buy them. As we noted, Intel faces...
www.techspot.com
Would it work? DZ said they don't need a lot of external revenue to make IFS work. By combining the two companies, could they support the IFS to become a viable system foundry. Also, the combined entity might be able to compete with Nvidia.
Just don't see it. Gut instinct is that this is a mad idea. The whole industry trend has been to fabless. And Broadcom has done very well from this - indeed the article raves about Broadcom's semi business gross margins, which it estimated at 70%.
Beyond this, I don't see how this moves the needle in competing against nVidia. If indeed that's a major concern for Broadcom. The competition vs nVidia is about a whole lot more than silicon cost and pricing.
Nor is it Broadcom's job to rescue Intel.
The UK press traditionally calls the summer holiday period "the silly season" since they used to need to dream up bizarre stories to fill up the slowest news period of the year. But we're back at school/work now ... and the stories keep coming (at least around Intel). It's disturbing that the cloud of uncertainty hovering above Intel keeps growing.
One of the things TSMC keeps hammering on is that they do not compete with customers, trusted foundry, etc… whomever buys IFS should head that warning because it is real.
I trust all here recall/understand that Broadcom is not a traditional tech firm, instead it's an acquisition banker cloaked as a tech firm. While they have made their investors happy, they did/do so by squeezing each new acquisition for all the juice, and line up the next one while the latest is 1/3 through the wringer.
Avgo is not into tech innovations per se. Some of their acquired divisions manage some new r&d in spite of what the c suite are doing.
If Avgo acquired Intel they would spin off or more likely sell IFS ASAP. Next they would juice the design groups. What remained would be almost unrecognizable to Intel watchers.
Proof? Just check the results on all Avgo acquisitions to date.
I am sure Avgo is looking at Intel with heightened interest, btw.
www.techspot.com
