Janice R. Andrews
Intel has recently turned down an unexpected proposal from ARM to purchase its core processor division, as reported by Bloomberg. ARM, best known for designing processors used in mobile phones by companies such as Apple and Qualcomm, made a high-level inquiry about acquiring Intel’s product unit—a move that caught many in the tech industry off guard.
However, Intel swiftly rejected the offer, asserting that its product group, which sells chips for PCs, servers, and networking, is not for sale. According to Bloomberg’s sources, ARM had no interest in Intel’s foundry division, which handles chip manufacturing.
Intel has been grappling with financial struggles. In Q2 2024, the company posted a $1.6 billion loss and is currently cutting 15,000 jobs as part of a $10 billion cost reduction plan. Over the past year, Intel’s stock value has halved, and the company is now worth $102.3 billion.
ARM’s acquisition of Intel’s product division would have marked a major shift in its business model, as ARM traditionally licenses its processor designs rather than producing its own chips. Qualcomm, another significant industry player, has also expressed interest in acquiring Intel, further underscoring the company’s present vulnerability.
While ARM buying Intel’s division seemed improbable, Intel still has other ways to attract investment. Apollo Global Management has reportedly offered to invest up to $5 billion, and Intel is considering selling part of its stake in chip-maker Altera to private equity investors.
As Intel faces these challenges, the tech world is keenly watching for its next moves.
