Beijing Morning News, March 12, Previous news Intel is considering buying Singapore's chip maker Broadcom, whose market value has exceeded US$100 billion. . Intel's move reflects one thing: They fear that if Broadcom successfully acquires Qualcomm, the completion of the merger will be a huge threat to Intel.
Informed sources told the Wall Street Journal that since the end of 2017, Intel has been trying to buy Broadcom, which has prevented Broadcom from buying Qualcomm for US$117 billion. The source said. If Broadcom and Qualcomm merge successfully, they will become the third largest chip company in the world after Intel and Samsung, which poses a serious threat to Intel's position in the market.
Qualcomm and Broadcom are the leaders of smart phone chips and data center chips, respectively, and these two areas are the future growth points of Intel. If Broadcom and Qualcomm merge, Intel will have a hard time continuing to grow in these two areas. Qualcomm had previously acquired NXP, a Dutch autopilot chip manufacturer, and the autopilot chip is Intel's most important area of the future.
Bernstein Research analyst Stacy Rasgon said: 'If Broadcom's merger with Qualcomm is completed, Intel will have a very strong competitor.' He pointed out that Broadcom and Qualcomm's camp in FY17. The close will be close to 40 billion US dollars, this figure will be very close to Intel's revenue of 63 billion US dollars in the same period. At the same time, he also pointed out that he is not optimistic about the merger of Intel and Broadcom, he believes that Intel can not successfully acquire Broadcom.
Intel has been established for 49 years so far. In 49 years of development history, the company rarely had large-scale acquisitions. The company’s largest acquisition was in 2015, when Intel acquired Altera for $16.7 billion.
In a statement, Intel stated that the company’s current work focuses on integrating their recent acquisitions, making them successful, gaining consumer acceptance, and bringing dividends to shareholders. Intel declined to comment on the planned acquisition of Broadcom.
Some analysts even believe that the marriage between Intel and Broadcom is meaningless and cannot strengthen Intel's strength. An analyst said:I don't think that this kind of merger will bring benefits to Intel. 'In his opinion, Broadcom's products are not highly integrated with Intel and cannot allow Intel to reduce manufacturing costs by expanding its production scale..
