Opinion: Intel wants to buy AMD’s old chip-making business? How weird are semiconductor mergers going to get?

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OPINION: Amid an unprecedented global chip shortage, the wacky world of semiconductor mergers could be headed completely through the looking glass, writes tpoletti.

Amid an unprecedented global chip shortage, the wacky world of semiconductor mergers could be headed completely through the looking glass.

After years of poor manufacturing results, new Intel Chief Executive Pat Gelsinger has pushed to massively expand his company’s foundry business and make more chips for other semiconductor firms. GlobalFoundries would represent a jumpstart, but regulatory questions would abound. Three semiconductor companies came out in support of Nvidia’s proposal to buy ARM recently: Broadcom Inc. AVGO, +1.43%, Marvell Technology Inc. MRVL, +1.62% and MediaTek 2454, -0.96% of Taiwan, in spite of their normally fiercely competitive stances. Broadcom CEO Hok Tan, known for not mincing words, said Nvidia had assured the company that it would “continue to make that technology available to the industry on a fair, reasonable and non-discriminatory basis.

Qualcomm, meanwhile, has reportedly been asking regulators to block Nvidia’s deal for ARM. Qualcomm has had its own problems with those same forms of government agencies, including years of antitrust battles with the Federal Trade Commission. Now, the FTC has eyes on Broadcom and earlier this month charged the company with illegally monopolizing the market for chips used in cable set-top boxes and broadband devices.

 

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Intel plans to get into the foundry business. GlobalFoundries Inc has been in that business for a long time. They could teach Intel a lot about Foundry operations. Furthermore, they would presumably bring considerable financial goodwill to Intel's Foundry business.

tpoletti Still pushing chip shortage….. we all know they create the shortage to justify price…. Just like oil

tpoletti horrible

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