[News] Broadcom Reportedly Focused on AI Development, Has No Plans to Acquire Intel

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Broadcom CEO Hock Tan, known as an aggressive dealmaker in the semiconductor industry, told the Financial Times that the company is fully focused on advancing its AI business and has no intention of acquiring Intel.

The same report noted that Tan explained Broadcom’s AI semiconductor operations are demanding substantial resources and focus, and the company has not been approached with any proposals to acquire Intel. He further stated that Broadcom would only consider acquisitions if the circumstances are practical.

Tan has built a reputation for bold acquisition strategies. Under his leadership, Avago Technologies acquired Broadcom for $37 billion in 2015, creating the Broadcom we know today. Most recently, Broadcom completed its $69 billion acquisition of VMware at the end of 2023.

However, not all of Tan’s acquisition attempts have been successful. One notable failure occurred in 2017 when Broadcom attempted a hostile takeover of Qualcomm after its initial bid was rejected. The move was blocked by the Trump administration, leading Tan to reflect that hostile takeovers are not a strategy he would pursue again. Despite this, he remains open to potential deals in both hardware and software sectors.

Tan also commented on the booming demand for AI technologies in the report, noting that major tech companies are heavily investing in AI infrastructure, with many clients planning three- to five-year investment strategies. He said these companies are moving quickly to execute their plans and will continue to do so until they exhaust their financial resources or face pushback from shareholders.

Broadcom isn’t the only company rumored to have the potential to acquire Intel; AMD has also been named as a contender. In an interview with Time, AMD CEO Lisa Su was asked about her competitors, Nvidia and Intel. The article highlighted that Intel’s CEO, Pat Gelsinger, recently stepped down. When questioned about who might succeed Gelsinger, Su refrained from offering specific names but expressed her respect for him as a colleague and acknowledged the challenging nature of the role. When further asked if the Biden administration had encouraged AMD to merge with Intel, Su firmly denied it.

(Photo credit: Broadcom)