Amid restructuring and facing the perils of fierce competition, Intel has rejected Arm’s bid for its chip division, stating emphatically that the unit is off the market.
Intel has turned down an acquisition proposal from British semiconductor company Arm for its product division, which specialises in chips for personal computers, networking equipment, and servers. According to a Bloomberg News report, Intel clarified that this product unit is unavailable for sale.
Details regarding the financial aspects of the discussions remain undisclosed, and it is uncertain whether the negotiations have been abandoned or are ongoing. Notably, Arm has expressed no interest in Intel’s manufacturing operations.
Last month, Intel sold its 1.18 million shares in Arm, generating approximately $146.7 million based on the average stock price from April to June 2024. This divestment aligns with Intel’s restructuring efforts to enhance financial stability and operational efficiency amid escalating competition in the semiconductor industry.
Intel has been facing significant challenges, having experienced a decline in market share in both consumer and enterprise sectors.
Once a dominant force with its iconic ‘Intel Inside’ marketing, the company has struggled against competitors like Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing Company (TSMC).
In an effort to regain its footing, Intel is focusing on artificial intelligence (AI) processors and developing a chip contract manufacturing business under Intel Foundry. Recently, it was reported that Qualcomm has shown interest in acquiring segments of Intel’s chip business, specifically its client PC design unit. However, discussions remain preliminary, with no formal proposals yet made.
