Arm Holdings contacted intel The deal is reportedly set to potentially buy the ailing chip maker’s products division only to be told that the business is not for sale, according to a person with direct knowledge of the matter.
Mohd. in high level investigation. Hand There was no interest expressed in Intel’s manufacturing operations, said the person, who asked not to be identified because the discussions were private. Intel has two main units: a product group that sells chips for personal computers, servers, and networking equipment, and another that operates its own factories.
Representatives for Arm and Intel declined to comment.
intelThe company, once the world’s largest chip maker, has become the target of takeover speculation after its business declined sharply this year. The company delivered a disastrous earnings report last month — sending its shares down to their worst in decades — and is cutting 15,000 jobs to save money. It is also scaling back factory expansion plans and pausing its long-awaited dividend.
As part of its turnaround efforts, Intel is separating the chip products division from its manufacturing operations. The move is aimed at attracting outside customers and investors, but it also lays the groundwork for splitting the company — which Intel has considered, as Bloomberg reported last month.
Arm, which is majority owned by SoftBank Group Corp, makes most of its revenue selling chip designs smart foneBut Chief Executive Officer René Haas has sought to expand its reach outside that industry. This includes an emphasis on personal computers and servers, where its chip designs are gaining ground against Intel’s. Although Intel no longer has the technological edge it once had, the Santa Clara, California-based company remains dominant in those markets.
The combination with Intel would help Arm expand its reach and move toward selling more of its own products. The company currently licenses technology and designs to customers, who then turn them into complete components. Its client list includes the biggest names in technology, such as Amazon.com, QualcommAnd Samsung Electronics.
Under Haas, the company has moved more towards offering fully manufactured products – potentially putting it in competition with its licensees.
Arm, based in Cambridge, England, has only a fraction of Intel’s revenue. But its valuation has soared since its initial public offering last year and now stands at more than $156 billion (approximately Rs 13,05,862 crore). Investors see the company as a beneficiary of a boom in AI spending, especially as it moves into data center chips. Arm is also backed by Japan’s SoftBank, which owns an 88 percent stake, potentially giving the company additional financial muscle.
In contrast, Intel has lost more than half its value this year and has a current market capitalization of $102.3 billion (roughly Rs. 8,56,344 crores). But the company also has other options to consider. Bloomberg reported this week that Apollo Global Management Inc. has offered to invest in the company. The company has signaled in recent days that it is willing to invest up to $5 billion, a vote of confidence in CEO Pat Gelsinger.
Intel also plans to sell a portion of its stake in semiconductor maker Altera Corp. to private equity investors. That business, which the chip maker bought in 2015, was spun off from Intel’s operations last year with the goal of taking it public. And speculation about a Qualcomm acquisition boosted Intel shares last week.
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