As the semiconductor industry moves toward another turning point, Intel, which has strong financial resources, is letting other companies know that it is a company willing to buy. However, only time will tell us what the company will buy.
Intel CEO Pat Gelsinger said that as the semiconductor industry becomes more capital-intensive, it should enter another round of consolidation. Chip design and production have become more and more expensive, which has opened the door to mergers and acquisitions for large companies such as Intel.against Wall Street Journal This week, Pat Gelsinger said that as the industry faces major changes, the semiconductor giant is willing to acquire other participants.After Intel’s person in charge made a comment Suspected acquisition target GlobalFoundries It is said that The listing process has started, Disrupt any potential transactions.
Intel CEO did not specifically mention GlobalFoundries in the interview, but when asked about this American foundry, he did say that the company is willing to acquire small companies in the semiconductor field.
“There will be consolidation in the industry,” Gelsinger said. “This trend will continue, and I expect that we will become an integrator. […] M&A requires willing buyers and willing sellers. I am a person willing to buy. ”
The number of companies that can use cutting-edge manufacturing technologies to produce chips is declining. Just 15 years ago, there were many integrated design manufacturers (IDM) and foundries that could simultaneously launch cutting-edge nodes with Intel and challenge the blue giant. Now the number of IDMs and foundries has been reduced either because of mergers and acquisitions, or because some companies have stopped producing chips. Today, there are only three companies in the world that can use leading processes to produce chips. Some companies cannot surpass the 14nm/12nm node, while others have not even entered the FinFET era.
Like other large companies, Intel has always been in M&A mode because the company has been working hard to acquire new IP and talent, expand its product lineup, and/or enter new markets.Intel has Dozens of acquisitions In the course of the last 25 years.
Strategic acquisitions such as the acquisition of Altera in 2014 enabled Intel to enter the FPGA market; the acquisition of Mobileye, Movidius, and Nervana made Intel an important competitor in the field of artificial intelligence and autonomous vehicles; the Chips and Technologies transaction is Intel’s entry into the graphics field; other transactions through new Technology and/or intellectual property rights strengthen Intel’s existing product line. What Intel has not done (at least not in recent history) is to buy other semiconductor manufacturers, because the company has always had sufficient production capacity.
Although Pat Gelsinger said that as Intel CEO, mergers and acquisitions are not the top priority of his agenda, but industry consolidation is inevitable and Intel will have to participate. As part of this, the acquisition of GlobalFoundries is of great significance to Intel. IDM 2.0 strategy (Despite the fact that it is difficult to complete due to anti-monopoly regulatory agencies). In addition, continued economic progress may make other companies a low-hanging fruit or strategic goal not to be missed.