More reports on: M&A, Semiconductors

Intel mulling acquisitions in semiconductor industry: report

10 March 2018

Intel is considering acquisitions in the semiconductor industry to stay on top with deals that would allow the chip giant to reshape the fast-consolidating sector to its liking, according to The Wall Street Journal .

Acording to the report, alarmed by Broadcom's hostile takeover attempt of Qualcomm, Intel has started looking at alternative acquisitions. These gambits could include an acquisition attempt of Broadcom if it looks likely to succeed in its pursuit of Qualcomm.

''It's a game of high-stakes poker in the chip industry, so it makes sense for Intel to be looking at more acquisitions,'' said Daniel Ives, chief strategy officer with market researcher GBH Tech Research, in an interview yesterday with The Mercury News. ''We are in the midst of massive consolidation in the semiconductor industry.''

''Intel is in a position of strength, but the Broadcom attempt to buy Qualcom has set off shock waves in the industry,'' Ives said.

According to Ives, an Intel purchase of Broadcom would be advantageous for Intel, by gaining technologies and capturing a fast-expanding rival, Ives said.

''It would be an offensive as well as defensive move,'' Ives said. ''Broadcom has really emerged as a strong company providing chips for smartphones, data storage and set-top boxes.''

Qualcomm has over the last few months tried to fend off Broadcom's unsolicited advances.

In the process it has rejected multiple Broadcom bids, the last one was for $121 billion, or $82 a share.

According to Qualcomm, each of Broadcom's bids undervalues it and the company has also cited regulatory concerns.

Meanwhile, earlier this week, it was reported that the US Committee on Foreign Investment was considering an investigation of a potential Broadcom takeover of Qualcomm, which has led Qualcomm to call a shareholder meeting until April.

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