Samsung & Apple also want to buy Intel, report claims

The past few years have been particularly difficult for Intel. Products underperforming the competition and early degradation failures in a couple of recent chip generations have led to a massive drop in the company’s stock. Therefore, tech industry experts have speculated about a potential sale to another major player. New reports suggest that Samsung and Apple are interested in acquiring Intel.

In early September, Routers revealed that Qualcomm was interested in buying part of Intel’s chip design business. A couple of weeks later, the company reportedly explored the possibility of acquiring Intel as a whole. The potential move would greatly boost Qualcomm’s position in the chip industry. The company is already the leading reference in the mobile segment and wants to do the same with laptops. However, Qualcomm would face strong competition to achieve its goal.

Samsung and Apple are reportedly interested in acquiring Intel

According to Moore’s Law is Dead, Samsung and Apple also showed interest in acquiring Intel. Both companies have compelling reasons to pursue the acquisition, as they have a significant stake in the chipset industry. Buying Intel would not only give them access to the company’s intellectual property but also its factories and related know-how. This would be especially useful for Samsung, which is struggling to get high yields of 3nm wafers from its Foundry division.

Apple would also benefit from both Intel’s intellectual property and its factories. Apple currently relies on TSMC to produce the chips for its iPhones, iPads, and Macs. In addition, the company will launch its first in-house modem in the iPhone SE 4. Buying Intel’s factories would be an investment in lower production costs for its Apple Bionic chips and modems in the long term.

Intel’s factories are located in the United States, which could be another plus. In recent years, the United States has taken an approach that aims to boost local production. The government offers subsidies and favorable tax conditions for those who move their production to the country. This would be beneficial for any company that acquires Intel.

Intel could spin off its Foundry division into a separate company

Recent reports suggest that Intel is considering spinning off its Foundry division into a separate company, like Samsung. So, there is a chance that an Intel acquisition would not include the company’s semiconductor factories. However, they would still have valuable intellectual property and chip design expertise. Intel also recently partnered with AMD to develop the EAG x86 ecosystem that will facilitate interoperability between products on both platforms.

Intel is also expecting to receive large cash injections in the coming months. The company has reached an agreement with the US Department of Defense to develop military-grade chips. In addition, Intel is expected to receive $8.5 billion in US funding before 2025 as part of the CHIPS Act initiative.