Qualcomm, Intel Acquisition Merger Sounding Out… If Successful, It Would Be the Largest Merger Ever

by times news cr

It’s not easy to pass antitrust review
Possible sale of Intel division

ⓒNewsis

The Wall Street Journal (WSJ) reported on the 20th (local time) that the U.S. semiconductor giant Qualcomm is exploring the possibility of an acquisition by Intel, a semiconductor giant suffering from poor management.

If Qualcomm’s acquisition of Intel goes through, it could be the largest merger in tech history, and the implications for the industry are likely to be significant.

However, the possibility of Intel’s merger, which has a market value of 90 billion dollars (about 120 trillion won), succeeding is still unclear. Even if Intel agrees to the merger, it is a very large transaction and it will not be easy for it to pass the antitrust review by the authorities. In order for Qualcomm to complete the merger, it is expected that it will have to sell off some of Intel’s business divisions.

Intel, once the world’s leading semiconductor company, has seen its stock price fall by about 60% from its peak this year. In 2020, Intel’s market value was $290 billion (about 387 trillion won).

Qualcomm’s current market capitalization is $185 billion (about 247 trillion won). Qualcomm is the largest supplier of semiconductors for mobile phones and is the largest supplier for Apple’s iPhone and other products.

The acquisition of Intel, a semiconductor manufacturer widely used in personal computers and server computers, will greatly expand Qualcomm’s business scope. Both Qualcomm and Intel are investing in AI semiconductors, but they are still far behind Nvidia’s AI semiconductors.

Intel, once the world’s largest semiconductor company, now lags behind competitors such as Qualcomm, Broadcom, Texas Instruments, and AMD.

If Qualcomm’s acquisition of Intel goes through, it would be the largest tech merger in history, surpassing Microsoft’s $69 billion acquisition of Activision Blizzard.

[서울=뉴시스]

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2024-09-21 15:04:31

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