Arm, the chip design powerhouse, just lately approached Intel about doubtlessly buying its product division, however was advised the enterprise will not be on the market, in line with a Bloomberg report citing an individual with direct data of the matter.
The high-level inquiry from Arm particularly focused Intel’s product group, which sells chips for private computer systems, servers, and networking tools.Notably, Arm didn’t categorical curiosity in Intel’s manufacturing operations, the supply advised Bloomberg.
This comes as Intel is going through extreme challenges after a disastrous earnings report sparked a historic inventory plummet. The corporate has responded with drastic measures, together with large job cuts, dividend suspension, and restructuring its operations. Intel is separating its product and manufacturing divisions, spinning off its foundry enterprise, and pausing main growth tasks.
Arm, majority-owned by SoftBank Group Corp., has been increasing past its stronghold in smartphone chip designs below CEO Rene Haas. The corporate has been pushing into markets historically dominated by Intel, reminiscent of private computer systems and servers.
Regardless of Intel’s current challenges, it stays a major participant in these sectors. A mix with Intel’s product division may have considerably boosted Arm’s attain and accelerated its transfer in direction of promoting extra of its personal merchandise, slightly than simply licensing designs.
Bloomberg studies that Intel’s separation of its chip product division from manufacturing operations, whereas aimed toward attracting exterior clients and traders, additionally units the stage for a possible firm break up.
The information of Arm’s curiosity in Intel comes on the heels of studies that Qualcomm, one other main participant within the semiconductor business, has additionally been exploring acquisition potentialities. The Wall Road Journal just lately reported that Qualcomm had approached Intel a few potential takeover, with CEO Cristiano Amon personally concerned in negotiations.
