知情人士表示，①Informed sources revealed that $Qualcomm (QCOM.US)$previously had discussions on acquisition matters, and the negotiations took place in the past few days, with the trade still far from being finalized; $Intel (INTC.US)$ ②Intel was once the world's largest semiconductor manufacturer, but has been in a declining state in recent years, and the decline accelerated in 2024.
Caixin News reported on September 21 that informed sources revealed that U.S. Qualcomm had previously been in discussions with Intel regarding acquisition matters.
Affected by this news, Intel rose nearly 9.5% at the end of the day, reaching a high of $23.14 per share, the highest level since August 2nd. Qualcomm, on the other hand, fell over 5.5% at one point. By the close of trading, both the increase and decrease in their stock prices had significantly narrowed, with Intel up 3.31% and Qualcomm down 2.87%.
Insiders have stated that the negotiations took place in the past few days and the transaction is still far from being finalized. In fact, there was news last month that Qualcomm had been in communication with Intel, but at that time, it was said that Qualcomm was very interested in Intel's "part of the design business".
According to analysis, if Qualcomm's acquisition of Intel is successful, it will be one of the largest technology mergers in history. Currently, Intel's total market value is 93.38 billion USD, compared to...$Microsoft (MSFT.US)$It spent 69 billion USD to acquire Activision Blizzard.
Intel used to be the world's largest chip manufacturer, but has been in a downturn in recent years, and the decline is expected to accelerate in 2024. After disappointing financial reports were released in August, its stock price experienced the largest single-day decline in more than 50 years.
Since the beginning of the year, Intel's stock price has dropped nearly 56% due to investor concerns about the company's expensive chip manufacturing and design plans. As a comparison,$S&P 500 Index (.SPX.US)$,$Nasdaq Composite Index (.IXIC.US)$And.$PHLX Semiconductor Index (.SOX.US)$It has risen nearly 20% year to date.
Earlier this week, Intel CEO Patrick Gelsinger sent an internal letter to employees, announcing the next phase of the company's transformation plan, including the spin-off of the chip foundry business, a reduction of 0.015 million employees by the end of the year, and the sale of real estate assets.
Intel's plight is not difficult to remind people of.$United States Steel (X.US)$The company, the former was once a world-class enterprise in the semiconductor design and manufacturing business, leading the global industry trends; the latter played an indispensable role in the industrialization process of the United States in the 20th century.
The difference is that the US government has provided Intel with the 'most biased' assistance in order to rebuild the position of semiconductor manufacturing - the Department of Commerce announced in March that it would provide Intel with an 8.5 billion US dollars grant and an 11 billion US dollars loan through the CHIPs and Science Act.
However, there were reports at the beginning of the month that due to the severe decline in Intel's performance, it may not be able to successfully obtain subsidies from the US government. Analysts believe that even if it is acquired by Qualcomm, it may not solve Intel's problems because Qualcomm lacks experience in manufacturing and cannot help it compete with$Taiwan Semiconductor (TSM.US)$Samsung.
In addition, potential mergers and acquisitions may be halted by regulatory institutions. A few years ago, when it comes to Qualcomm, as well as$Broadcom (AVGO.US)$to$NVIDIA (NVDA.US)$ $Arm Holdings (ARM.US)$ Two acquisition offers were canceled under the pressure of national security and antitrust.
Editor/Emily