Just a couple of years ago, no one would have imagined that companies like Arm or Qualcomm were in a position to buy a historical giant like Intel. But the offer has been on the table. Intel has said nobecause it doesn’t make any sense.
Intel’s last few years have been very bad. Year after year it has been losing market share in the PC processors and laptops, and has not been able to gain a foothold in the mobile processor market.
Its commitment to Intel Arc gaming graphics cards has not taken off, to the point that its current market share, after two years in business… is 0%.
Intel is going to sell… but not its processors
Intel’s poor results in the last two years have led the company to announce that it will sell its Altera programmable chip division. This has encouraged companies like Arm and Qualcomm to bid for its processor division, the company’s crown jewel.
As you have been able to know Bloomberg by a source involved in the matter, Intel rejected Arm’s offer arguing that “the division is not for sale.” According to that argument, he would not have accepted Qualcomm’s offer either.
The reality is that, unless Intel is in dire straits, which it is not yet, selling its processor division makes no sense.
PC and server processors are the very essence of Intel. She has basically created PC computing, and it remains her main source of income. Selling them would be completely losing their meaning as a company. Dismantle Intel, basically.
On the other hand, Intel still has resources to overcome the bad streak. As I mentioned, it is going to sell its Altera programmable chip division, which is a business it bought a few years ago, and is secondary. It also intends to sell headquarters in different countries, and has canceled the creation of new factories.
Besides, the Apolo investment group is going to invest 5,000 million dollars in the companyand is about to receive $8.5 billion in subsidies and $11 billion in low-interest loans from the North American government, for manufacturing chips in the country.
Intel has rejected purchase offers from Arm and Qualcomm, and it has reasons for it. It is not that desperate, and selling its processors would be its suicide as a company. We will see how his situation evolves in the coming months.
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Tags: Intel, CPU, Processors
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