The blue giant said that its business unit is not for sale. Engadget quoted an Intel insider as saying that the unit is responsible for PCs, servers, networking chips, and a foundry. However, Arm is not interested in Intel's semiconductor foundry division.

Intel’s value and position have been in rapid decline over the past twelve months. Following a $1.6 billion net loss in the second quarter of 2024, the company announced 15,000 job cuts as part of an overall plan to save $10 billion.

Last week, the company revealed plans to spin off its struggling foundry division into a standalone subsidiary. Intel lost half its market value last year and is now worth $102.3 billion.

1914a450 7cb6 11ef 9f7b 9052e082c5d5.jpeg
Intel's position is plummeting. Photo: Engadget

Arm is a company that sells processor designs to customers like Qualcomm, Apple and several major manufacturers in the mobile space.

The UK company currently has no chip manufacturing facilities, so buying Intel's product division could be a precursor to changing its business model.

With Intel in a vulnerable position at the moment, rivals have begun to circle in. Qualcomm has also previously expressed interest in taking over the company.

Any merger involving Arm and Qualcomm would be a regulatory nightmare, but the fact that offers are being made at all shows the declining status of the once-American semiconductor giant.

The Giant's Stumble

According to WSJ, strategic mistakes combined with the rapid explosion of artificial intelligence have turned the long-standing semiconductor corporation from "hunter" to "prey".

Intel’s problems began with manufacturing failures before Gelsinger took the helm, and things got worse as the CEO pursued a costly transformation strategy that failed to anticipate the AI ​​boom, which shifted fundamental demand to a type of chip made by rival Nvidia.

Chip manufacturing is incredibly complex and expensive. Last year, Intel spent $25.8 billion, or about 48% of its revenue.

Meanwhile, Qualcomm's total capital spending in its most recent fiscal year was $1.5 billion, just over 4% of sales.

On Intel's side, they have a number of other ways to boost investment in the company, such as Apollo Global Management has offered to invest up to $5 billion.

Intel also plans to sell a stake in chipmaker Altera to private equity investors.

(According to Bloomberg, Engadget, WSJ)

Intel loses $30 billion chip contract to AMD The Verge reported that Intel lost the race to win a chip contract, which could generate $30 billion in revenue, for the PlayStation 6 generation of gaming consoles.