Intel rejected an offer from British chip company Arm to acquire the company’s product division.
According to a report from Bloomberg, Arm made a “high level enquiry” but was told the unit wasn’t for sale. Citing a person familiar with the situation, the report noted that Arm did not express an interest in Intel’s manufacturing operations.
Separately this month, it was reported that Qualcomm had also eyed a takeover of Intel, with asset manager Apollo reportedly offering to invest up to $5 billion in the company.
Intel has been attempting to reverse its poor financial outlook after it posted a $1.6 billion loss in Q2 2024. Immediately after the results were released, Intel announced it would be making 15,000 layoffs across the company as part of a plan to save $10 billion.
Earlier this month, CEO Pat Gelsinger told staff the company was pausing plans for new chip factories in Germany and Poland, in addition to delaying the opening of a new chip packaging plant in Malaysia. Intel’s US-based fabs in Arizona, Oregon, New Mexico, and Ohio are unaffected by the changes.
Gelsinger also told employees that the company would be decoupling from its Foundry Services business, writing in a memo that Intel Foundry would now operate as “an independent subsidiary inside of Intel.”
Intel to secure CHIPS Act funding
In early September, it was reported that the US government was likely to delay handing over the $8.5 billion of CHIPS Act funding due to the company’s ongoing financial woes.
However, it has since been reported by the FT that the company is now on track to start receiving its direct funding before the end of 2024. Citing two people with knowledge of the situation, the report did note that factors could still disrupt this timeline, with any potential takeover of part or all of Intel’s businesses – such as those reportedly proposed by Qualcomm and Arm – potentially derailing the negotiations with the government.
Under the terms of the agreement first announced in March 2024, Intel was set to receive the $8.5bn in direct funding in addition to $11bn in low-interest rate loans and a 25 percent investment tax credit on up to $100 billion of Intel’s capital investments in Arizona, New Mexico, Ohio, and Oregon.
