Intel, Facing Threat, Considers Deals That Could Include Bid for Broadcom

Andrew Cummings
March 12, 2018

But when it comes to Intel, it is believed that the combination of Qualcomm and Broadcom would pose a serious threat to the same company, since although it no longer develops SoCs for smartphones, it continues to manufacture other extremely important and beneficial components.

The panel on Sunday ordered San Diego-based Qualcomm Inc (QCOM.O) to postpone its shareholder meeting by 30 days so it could investigate Broadcom's $117 billion hostile bid for Qualcomm.

If Broadcom seems set to prevail, Intel could step in with its own offer, the newspaper said.

"As a USA corporation, our future acquisitions in the United States would not be subject to certain regulatory processes required for acquisitions by foreign corporations", Broadcom said in a regulatory filing on Friday. Finally, Mizuho upped their price objective on shares of Broadcom from $290.00 to $310.00 and gave the stock a "buy" rating in a research report on Thursday, December 7th. The report cautioned it's far from guaranteed that Intel would make an offer and that it could pursue smaller acquisitions instead. The review of Broadcom's bid illustrates the US government's expanding focus on the competitiveness of the national semiconductor industry as China advances. The consolidation is driven not only by economies of scale, but the need for new kinds for chips for an expanding array of new devices and a need for new kinds of processing for artificial intelligence and machine learning applications such as image and speech recognition and self-driving cars.

The company said past year it's buying Israeli self-driving auto technology maker Mobileye NV for about $15 billion.

"There is synergy with Intel for sure", Patrick Moorhead, president and principal analyst at Moor Insights & Strategy, told SiliconANGLE.

Broadcom is a leader in the chips that control Bluetooth connectivity and link mobile phones and other devices to Wi-Fi networks. Besides, Broadcom products would not be able to correctly match Intel's operations.

Broadcom has steadily stepped up its pursuit of Qualcomm, most recently upping its bid to $121 billion early last month. Qualcomm has also been trying to purchase NXP Semiconductors, to make matters more complicated.

Broadcom has promised not to sell critical national security assets to foreign buyers if its deal to buy chipmaker Qualcomm is approved, another effort by the Singapore-based firm to appease United States security concerns.

The deal's pushback on national security grounds is seen by some as trade posturing by the Trump administration against China.

Separately, Qualcomm said it discontinued the role of executive chairman and named a new non-executive chairman as it seeks to curry favour with shareholders ahead of a proxy fight with Broadcom, now slated for 5 April.

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