Arm, the chip design powerhouse, recently approached Intel about potentially acquiring its product division, but was told the business is not for sale, according to a Bloomberg report citing a person with direct knowledge of the matter.
The high-level inquiry from Arm specifically targeted Intel’s product group, which sells chips for personal computers, servers, and networking equipment.Notably, Arm did not express interest in Intel’s manufacturing operations, the source told Bloomberg.
This comes as Intel is facing severe challenges after a disastrous earnings report sparked a historic stock plummet. The company has responded with drastic measures, including massive job cuts, dividend suspension, and restructuring its operations. Intel is separating its product and manufacturing divisions, spinning off its foundry business, and pausing major expansion projects.
Arm, majority-owned by SoftBank Group Corp., has been expanding beyond its stronghold in smartphone chip designs under CEO Rene Haas. The company has been pushing into markets traditionally dominated by Intel, such as personal computers and servers.
Despite Intel’s recent challenges, it remains a significant player in these sectors. A combination with Intel’s product division could have significantly boosted Arm’s reach and accelerated its move towards selling more of its own products, rather than just licensing designs.
Bloomberg reports that Intel’s separation of its chip product division from manufacturing operations, while aimed at attracting outside customers and investors, also sets the stage for a potential company split.
The news of Arm’s interest in Intel comes on the heels of reports that Qualcomm, another major player in the semiconductor industry, has also been exploring acquisition possibilities. The Wall Street Journal recently reported that Qualcomm had approached Intel about a potential takeover, with CEO Cristiano Amon personally involved in negotiations.
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