Friday, September 20th 2024

Qualcomm Said to Have Approached Intel About Takeover Bid

This is not an April fool, as Qualcomm has apparently approached Intel with a takeover bid, according to the Wall Street Journal. The news follows earlier rumours about Qualcomm having eyed the opportunity to buy parts of Intel's client PC business, especially the parts related to chip design. Now it looks like Qualcomm has decided it might as well give it a go and take over Intel entirely, if the WSJ's sources can be trusted. It's still early days though and no official offers appear to have been proposed by Qualcomm so far and it doesn't appear to be a hostile takeover offer at this point in time. As such, this could turn out to be nothing, or we could see a huge change in the chip market if something comes of it.

It's worth keeping in mind that Intel's share price has dropped by around 57 percent so far this year—not taking into account today's small jump for Intel—and Qualcomm's market cap stands at over twice that of Intel's at 188 vs 93 billion US dollars. Even if Intel was to agree to a takeover offer from Qualcomm, there are several antitrust hurdles in multiple countries to get around for the two giants as well. This is despite the two not being direct competitors, but with Qualcomm recently having entered the Windows laptop market, the two are at least competing for some market share there. It's also unclear what Qualcomm would do with Intel's x86 legacy if it acquired Intel, as Qualcomm might not be interested in keeping it, at least not on the consumer side of its business. Time will tell if this is just some advanced speculation or a serious consideration by Qualcomm.
Sources: The Wall Street Journal (paywall), Reuters
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102 Comments on Qualcomm Said to Have Approached Intel About Takeover Bid

#76
Neo_Morpheus
john_Because tomorrow Nvidia can say "I have a new ARM platform for desktop and laptop PCs and all my new high end and enthusiast cards will be released primary on that platform and only many months later on x86 platforms. And because i am using a new proprietary interface, they will perform better on my ARM based platform while also being cheaper than the ones sold for the x86 platform".
IBM tried that with MicroChannel back then and everyone went with the inferior but open options.

Then again, we had smarter consumers back then…
Posted on Reply
#77
lexluthermiester
Neo_MorpheusThen again, we had smarter consumers back then…
That is certainly true. People were far less like sheep...
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#78
dyonoctis
DavenEverything you stated is incorrect. IFS is part of Intel. It is not taxed separately. I understand exactly how it works.

Intel's only reason to play accounting tricks to make it seem they split off IFS is to get orders from Apple, AMD, Nvidia, Qualcomm, etc. without conflict of interest. That has not happened and will not happen. Intel WILL sabotage any chip orders received from these companies in order to give them a leg up in the market. This is why Intel has received close to ZERO chip orders from other companies. The proof is in the pudding as they say. Only people like you play into the subterfuge but unfortunately for Intel, you are not in charge of a large chip design firm.
You mean American companies don't trust other American companies in that specific context*. Google and Qualcomm both made chips at Samsung fabs even though those guys are very active in developing their own Exynos SoC (with AMD RDNA GPU tech inside) competing with them. The Samsung CEO went to prison for bribery and embezzlement :D. But it's fine since they are not American.

The conspirationist in me want to say that Samsung is single-handedly responsible for Google Tensor's poor performance for 4 generations straight, but Google has been too stupid to figure it out.
Posted on Reply
#79
semantics
dyonoctisYou mean American companies don't trust other American companies in that specific context*. Google and Qualcomm both made chips at Samsung fabs even though those guys are very active in developing their own Exynos SoC (with AMD RDNA GPU tech inside) competing with them. The Samsung CEO went to prison for bribery and embezzlement :D. But it's fine since they are not American.

The conspirationist in me want to say that Samsung is single-handedly responsible for Google Tensor's poor performance for 4 generations straight, but Google has been too stupid to figure it out.
Google already switched to TSMC. Tensor G4 is basically just G3 with minor updates as they've long decided to ditch samsung G4 is just a filler because the TSMC one wont be ready till next year.
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#81
DeathtoGnomes
I think these rumors are nothing but FUD, I mean who would be the real winner here if its true, Intel.
Posted on Reply
#82
lexluthermiester
DeathtoGnomesI think these rumors are nothing but FUD
Agreed.
DeathtoGnomesI mean who would be the real winner here if its true, Intel.
Not really.
Posted on Reply
#83
Neo_Morpheus
AusWolfAre you sure?
www.techpowerup.com/326690/intel-awarded-up-to-usd-3b-by-the-u-s-administration-for-secure-enclave
Too big to fail….

One of us…

Never leave anyone behind….

Cmon man, you are one of the smart ones here.

Thats just the US Gov protecting their own, just like Boeing.
lexluthermiesterAgreed.

Not really.
I dont understand the blind support for a company that had zero issues in screwing us the consumers over and over.

I really dont.
Posted on Reply
#84
chrcoluk
Cant see it happening, and I also dont understand why anyone on here would want it to happen.

We need at least 2 CPU manufacturers who's primary focus is x86-64.
Posted on Reply
#85
lexluthermiester
Neo_MorpheusI dont understand the blind support for a company that had zero issues in screwing us the consumers over and over.
It's not blind support. It's called looking at reality impartially & objectively and without bias. Try it sometime.
Posted on Reply
#86
mb194dc
thesmokingmanAs I posted earlier, pump n dump news play.
Surprised it's even legal tbh. SEC sleeping these days?

In the last week, had the US government bunging intel money, then the AWS news, then this... Pretty transparent stock price manipulation.

What Intel need is another breakthrough like Core in 2006. AMD were starting to eat their lunch then as well. Without that, they'll stay firmly in decline.

No idea why Qualcomm would be interested in them as they are now...
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#87
Daven
lexluthermiesterIt's not blind support. It's called looking at reality impartially & objectively and without bias. Try it sometime.
Wow... :slap:
Posted on Reply
#88
R0H1T
Maybe
mb194dcSEC sleeping these days?
You missed the last ~100 years apparently :laugh:
Posted on Reply
#89
maximumterror
mb194dcSurprised it's even legal tbh. SEC sleeping these days?

In the last week, had the US government bunging intel money, then the AWS news, then this... Pretty transparent stock price manipulation.

What Intel need is another breakthrough like Core in 2006. AMD were starting to eat their lunch then as well. Without that, they'll stay firmly in decline.

No idea why Qualcomm would be interested in them as they are now...
...give me 50 billion and i will buy them the next day
Posted on Reply
#90
Neo_Morpheus
lexluthermiesterIt's not blind support. It's called looking at reality impartially & objectively and without bias. Try it sometime.
I do, all the time and why i cant comprehend the almost 4 pages by now, of excuses on behalf of poor and defenseless Intel.

The truth is, they are a company that its on a death spiral and a prime target for another company to take over it.

But the white knights are all out making possible excuses to cover this plus covering/ignoring all of their anticonsumer actions that affected everyone, including the white knights.

So perhaps your advice might be a good one to consider practicing.
Posted on Reply
#91
AusWolf
Neo_MorpheusThats just the US Gov protecting their own, just like Boeing.
Exactly, and that makes them special. They're the only US-based company that manufactures its own design chips in its own fabs. They're strategically important in our current Cold War Lite (TM).
Posted on Reply
#92
lexluthermiester
Neo_Morpheusexcuses
There is a big difference between making excuses and explaining reasons.
AusWolfThey're the only US-based company that manufactures its own design chips in its own fabs.
This. And do they it very well.
Posted on Reply
#93
Neo_Morpheus
lexluthermiesterThere is a big difference between making excuses and explaining reasons.
Perhaps, but lets be honest my friend, plenty of the so called “reasons” are wishful excuses.

Qualcomm, like many others are American companies with enough clearance and engagement with the gov to be cleared in taking over intel.

Granted, there will be concessions , restrictions and conditions, but it can definitely happen.

Heck, it could happen to Boeing right now, it might be that the few players that could, are simply not interested in getting themselves into that mess.
Posted on Reply
#94
R0H1T
Here's the part I was talking about ~
In fact, Chipzilla may not be worth much to Qualcomm unless it can renegotiate the x86/x86-64 cross-licensing patent agreement between Intel and AMD, which dates back to 2009. That agreement is terminated if a change in control happens at either Intel or AMD. There are also prior pacts between AMD and Intel.
Obviously the exact T&C are confidential, but if push comes to shove, AMD can drag QC through the court for billions! Again, only if this goes through, which would be a hard sell right now.
www.theregister.com/2024/09/21/qualcomm_intel_takeover/
Posted on Reply
#95
Dr. Dro
R0H1THere's the part I was talking about ~

Obviously the exact T&C are confidential, but if push comes to shove, AMD can drag QC through the court for billions! Again, only if this goes through, which would be a hard sell right now.
www.theregister.com/2024/09/21/qualcomm_intel_takeover/
Realistically speaking, such crucial agreements would be renegotiated immediately as part of any takeover bid (likely to AMD's immediate benefit). Qcom is also an American company through and through, having been founded by American businessmen in American soil (just like Intel), so the government would be a lot less likely to intervene on national security grounds, at least as long as it keeps having a say and this implicit, indirect control they seem to have over Intel. The attempted takeover of ARM by Nvidia was largely against the interests of the UK government, and I'd say that was a big reason why it failed - not to mention it'd have very real industry-wide implications. I don't see those happening here, not in the same scale anyway.
Posted on Reply
#96
AusWolf
Dr. DroQcom is also an American company through and through, having been founded by American businessmen in American soil (just like Intel), so the government would be a lot less likely to intervene on national security grounds, at least as long as it keeps having a say and this implicit, indirect control they seem to have over Intel.
That's a good point actually.
Posted on Reply
#97
R0H1T
Dr. DroRealistically speaking, such crucial agreements would be renegotiated immediately as part of any takeover bid (likely to AMD's immediate benefit). Qcom is also an American company through and through, having been founded by American businessmen in American soil (just like Intel), so the government would be a lot less likely to intervene on national security grounds, at least as long as it keeps having a say and this implicit, indirect control they seem to have over Intel. The attempted takeover of ARM by Nvidia was largely against the interests of the UK government, and I'd say that was a big reason why it failed - not to mention it'd have very real industry-wide implications. I don't see those happening here, not in the same scale anyway.
UK govt? From what I remember, it is majority owned by a Japanese firm, and China had the biggest issue with that deal. I don't remember the exact timeline, but those things happened and, of course, COVID. The issue with Intel is Capex; it would have to be a leveraged buyout, and QC isn't likely going to want that anytime soon! Given they'll lose Apple money in the next 2~4 years and possibly major parts of the Samsung lineup as well. Taking that amount of debt will tank the new combined firm's stock price as well. There's no way this goes through unless Intel offloads their fabs and someone still banrolls the deal.

forums.macrumors.com/threads/apples-first-5g-chip-for-iphones-reportedly-wont-support-mmwave.2437043
Posted on Reply
#98
Dr. Dro
R0H1TUK govt? From what I remember, it is majority owned by a Japanese firm, and China had the biggest issue with that deal. I don't remember the exact timeline, but those things happened and, of course, COVID. The issue with Intel is Capex; it would have to be a leveraged buyout, and QC isn't likely going to want that anytime soon! Given they'll lose Apple money in the next 2~4 years and possibly major parts of the Samsung lineup as well. Taking that amount of debt will tank the new combined firm's stock price as well. There's no way this goes through unless Intel offloads their fabs and someone still banrolls the deal.

forums.macrumors.com/threads/apples-first-5g-chip-for-iphones-reportedly-wont-support-mmwave.2437043
Yeah, Softbank. But iirc, administratively speaking ARM remained UK-based throughout. My remark only really touched the ideological side of it, really. Intel's a delicate beast because of its very deep roots and extreme CapEx. Qcom is one of the few companies I see being able to merge with Intel, though, the other being Apple itself (although I wager they'd be primarily interested in Intel's foundry business if anything, since their whole business relies on TSMC way too much).
Posted on Reply
#99
R0H1T
The issue is market conditions and demand for both their products. QC is going down in terms of market dominance slowly but surely. They have entered PC, but the jury's out on that. Intel's going down even worse, and their fabs are way below par wrt TSMC right now. Lastly, China ~ they're adding way more fab capacity and building big chips themselves! Do you want to take a $200 billion punt on the rest of the world being able to replace maybe half of China's demand in the next 10~20 years?
Posted on Reply
#100
Neo_Morpheus
AusWolfThat's a good point actually.
Perhaps because English is a second language for me and hence not capable of putting my sentences as eloquently as @Dr. Dro did, but thats pretty much what i have been saying on all my previous posts.
Dr. DroApple itself (although I wager they'd be primarily interested in Intel's foundry business if anything, since their whole business relies on TSMC way too much).
That makes sense and one of the possible scenarios that i mentioned was buying parts of Intel as they made sense to the prospective buyers.
Apple has the money and need to take over the foundries and Qualcomm can take the rest.
R0H1TDo you want to take a $200 billion
See above. In such a scenario, the price would be a lot lower.
Posted on Reply
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