There are reports that ARM is interested in acquiring intel's chip product division, but it was rejected.

On Friday, September 27th, Bloomberg cited sources saying that ARM had approached intel to discuss the acquisition of intel's product division, but was informed that the business was not for sale.

Currently, intel has two main divisions: one is the product department that sells chips, and the other is the operation department of the factories. Bloomberg stated that ARM hopes to acquire intel's product department, but is not interested in the operation department of the factories.

As the former global largest chip manufacturer, Intel's business has deteriorated rapidly this year, with the stock price down 30% year to date, becoming the worst performing stock in the Dow. Intel's rapid decline has sparked speculation about its potential acquisition. In an effort to save itself, Intel announced a plan to lay off 15,000 people, postpone factory expansions, and suspend dividend payments. At the same time, as part of the "self-rescue plan," Intel is separating the chip product division from the manufacturing business. This move aims to attract external customers and investors, but also paves the way for the company's split.

Competition between ARM and Qualcomm

In addition to ARM, Qualcomm also hopes to acquire Intel. In the early hours of September 21st, there were reports that Qualcomm had been in contact with intel regarding the acquisition, and speculation about Qualcomm's acquisition over the past week has boosted Intel's stock price.

For a long time, intel's x86 architecture and Qualcomm's Arm architecture have been "fighting" in the chip market. The x86 architecture dominates the PC space, while Arm architecture has an advantage in the mobile device sector. If Qualcomm successfully acquires Intel, it will gain stronger competitiveness in the PC market.

On the other hand, ARM is mainly controlled by SoftBank Group, with most of its revenue coming from the sale of smart phone chip designs. Current CEO Rene Haas has been seeking to expand ARM's influence in other industries, including entering the personal computer and server markets by designing chips that can compete with Intel's products, although Intel currently holds a leading position in the chip markets for personal computers and servers. Acquiring Intel's chip product division will help ARM expand its market and drive more sales of its own products.

Although ARM's revenue is still insignificant compared to Intel's, its valuation has soared since its initial public offering last year, now exceeding $156 billion. Investors believe that ARM is benefiting from the AI trend, especially with ARM's further entry into the datacenter chip market. At the same time, SoftBank, holding 88% of ARM shares, can also provide additional financial support for ARM. In contrast, Intel has lost over half of its market cap this year, currently valued at only $102.3 billion.

In addition to the acquisition of Intel, ARM and Qualcomm themselves are also in competition, both aiming to further capture the PC chip market.

Qualcomm recently announced its Snapdragon X Plus 8-core processor using ARM architecture, stating that the processor is designed specifically for PCs priced as low as $700, performing exceptionally well in power efficiency and battery life. Qualcomm has also established an exclusive partnership with Microsoft, where Copilot+ PCs are equipped with Qualcomm X series chips.

ARM currently mainly licenses its technology and designs to customers who then turn them into complete components. ARM's customer list includes tech giants such as Qualcomm, Amazon, Samsung Electronics. Under Haas's leadership, the company is gradually moving towards providing complete products, which could lead to competition with its licensed customers.

In the future, if Intel reaches an acquisition agreement with ARM or Qualcomm, it may signify a significant shift in the balance of power in the PC chip market.