WSJ “High vetting barriers, uncertain success”
American semiconductor company Qualcomm has expressed its intention to acquire Intel. Intel, once the world’s number one semiconductor company, has restructured due to poor performance and has even become a target for mergers and acquisitions (M&A).
On the 20th (local time), the Wall Street Journal (WSJ) reported, citing anonymous sources, that Qualcomm had made an acquisition proposal to Intel. As of the 20th, Intel’s market capitalization was $93.2 billion (approximately 124.5 trillion won), and if the acquisition is successful, it is expected to be the ‘deal of the century’, the largest M&A in recent years.
This news was delivered while Intel, which was in the midst of a crisis, was undergoing a major internal restructuring. On the 16th, Intel announced a restructuring plan that included spinning off its foundry (semiconductor contract manufacturing) division and halting construction of factories in Poland and Germany for two years.
Intel, which monopolized the PC central processing unit (CPU) market in the 1990s and reigned as the ‘king’ of the semiconductor industry, is being chased by AMD, a latecomer, in server CPUs, and is losing its presence in the graphics processing unit (GPU), a key market for artificial intelligence (AI), to Nvidia. This year, Intel’s deficit increased from $381 million in the first quarter (January to March) to $1.61 billion in the second quarter (April to June).
However, foreign media such as WSJ analyzed that there are high barriers to the acquisition actually being completed, such as the competition authorities’ review of the business combination. WSJ reported that the sources who reported the acquisition proposal also warned of caution, saying that this deal is not certain. It also raised the possibility that Qualcomm will sell some of Intel’s assets or businesses to make it happen. After the news of the acquisition was reported, Qualcomm’s stock price closed down 3% on the New York Stock Exchange, while Intel’s stock price rose 3%.
Reporter Kwak Do-young [email protected]
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2024-09-24 00:18:43