Arm Holdings Approached Intel For Product Division Acquisition, But Was Denied
The British semiconductor manufacturer did not indicate an interest in Intel's manufacturing capabilities
Arm Holdings approached Intel about acquiring the company's product division but was told it was not for sale, according to Bloomberg News. According to a source familiar with the conversations, the British semiconductor manufacturer did not indicate an interest in Intel's manufacturing capabilities.
The article did not include any financial information or indicate whether the negotiations were still ongoing or had been abandoned. Arm and Intel declined to comment on the situation.
Once a dominant player in the semiconductor business, Intel has struggled to maintain its production edge, particularly against Taiwanese rival TSMC. The company has also failed to build a popular chip for the generative AI sector, which rivals Nvidia and AMD have effectively capitalised on. Earlier this month, Qualcomm considered an acquisition of Intel, signalling a strong interest in the struggling chipmaker.
In order to revitalise its business, Intel has changed its attention to creating AI processors and building a chip contract manufacturing business known as a foundry. As part of its restructuring efforts, the corporation aims to halt building of plants in Poland and Germany, as well as cut its real estate assets.
Intel's struggles in the competitive semiconductor industry have spurred a rethinking of its strategy. The interest from Arm and Qualcomm shows the possibility for transformative mergers in the industry as businesses seek to react to changing market demands.
