[News] Intel’s Potential Buyers Speculated Ahead of Trump’s Inauguration: A Quick Round-up

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Ahead of Trump’s inauguration, U.S. semiconductor giant Intel is rumored to be connected with more potential buyers for its struggling chip business. A report from SemiAccurate discloses that a company is interested in buying Intel outright, not just parts, and this isn’t one of the firms mentioned in rumors after former CEO Pat Gelsinger’s departure.

The report even claims that SemiAccurate has received direct confirmation from another high-level source, increasing its confidence in the plan from about 60% to over 90%.

So, who would be the key figure to “Make America Great Again” by acquiring Intel? Here is a quick roundup of recent speculations and related analysis compiled by TrendForce.

Elon’s Musk’s Next Step?

Interesting enough, there were rumors indicating that at the weekend, private jets from Musk, executives of Qualcomm, and GlobalFoundries have gathered at Trump’s Mar-a-Lago Club.

The man who eagerly explores in the space with his rockets now might be showing interest in microchips. Another Tipranks report, citing Citi, claims that Elon Musk was mentioned as a potential buyer of Intel on SemiAccurate. However, the report also brings up concerns that this may appear to be a “poor outcome” for Intel unless Team Blue hires a new CEO with expertise in advanced manufacturing, technical skills, and Intel experience.

GlobalFoundries to Team up?

Notably, another report from Bloomberg suggests that senior government officials are considering a potential deal between Intel and GlobalFoundries, while some see GlobalFoundries as a strong partner due to its status as a trusted Pentagon supplier. In September, 2024, Intel secured a $3.5 billion Pentagon contract to produce advanced semiconductors for military and intelligence use.

As they are both major U.S.-based foundries, a merger between GlobalFoundries and Intel could create a company making everything from basic semiconductors to advanced processors, the report adds.

However, the merger could pose challenges. For one thing, Mubadala Investment Co., the Abu Dhabi government’s investment arm, owns about 80% of GlobalFoundries, as noted by Bloomberg. For another, GlobalFoundries moved away from leading-edge node production years ago due to a lack of orders, and it may not have the funds for an acquisition, the report indicates.

Qualcomm and Broadcom May be Moving Away

The ones with the capital, however, may no longer be interested in the deal. A previous Bloomberg report noted that Qualcomm’s interest in acquiring Intel has waned, as the complexity of acquiring all of Intel has made the deal less appealing. However, sources suggested Qualcomm could reportedly consider buying parts of Intel or revisit the idea later.

On the other hand, Broadcom, known for its custom ASICs co-developed with big CSPs, told the Financial Times that the company is fully focused on advancing its AI business and has no intention of acquiring Intel.

Read more

• [News] Intel Reportedly Confirms Panther Lake to Be Built on 18A, with Samples Distributed to Customers
• [News] Broadcom Reportedly Focused on AI Development, Has No Plans to Acquire Intel

(Photo credit: Intel)