- Several large companies wish to acquire Intel, according to reports
- The suites potentially include TSMC and Broadcom, but AMD could block them
- A 16 -year -old transaction will require that any Intel buyer negotiates with AMD
Recent reports have said that Taiwan Semiconductor Manufacturing Co. (TSMC) and Broadcom are considering offers to divide Intel separately, with Broadcom interested in the side of flea design and business marketing and TSMC potentially interested in factories of fleas. This story came in the heels of a report of Enews EuropeWho suggested an alternative scenario in which Intel could merge with Globalfoundries, a company born from the manufacturing division of AMD which was disturbed a few years ago when the manufacturer of chips who then destroyed decided to become soggy.
There is no confirmation that Intel will be sold to one of the potential contenders who would be sniff, but there are obstacles that any buyer should be aware. One, of course, is that the American government will not be able to authorize it a foreign entity like TSMC to manage Intel’s affairs. Another problem, which Dollar figure Released in November 2024, could complicate any agreement more.
Large cross -license agreements
“We are frequently asked for a version of” someone will acquire Intel? “”, Noted the site. “At this point, we think it is very improbable, but these are very unpredictable moments. Put aside all the main considerations – such as money, strategy and regulatory approval – there are some other obstacles. The chief among these is the License of Intel for X86.
“Apparently, when Intel and AMD have resolved their disputes of several decades on X86, the cross -license agreement has held provisions concerning transferability. If either of the companies is acquired, the other has the right to cancel the license, effectively blocking the agreement. When this has been signed, we must think that all the people involved assumed that the DMLA would be acquired, but the arrangement seems to be mutual, and the times change. »»
Change that they do indeed. While AMD works well, Intel … is it. Hence all speculation surrounding its potential acquisition.
The large cross -license agreements, which are not limited only to the X86 instructions architecture (ISA), Mean Intel and AMD can use the patents of the other and will avoid prosecution against accidental counterfeits. There are strict rules on what they can do, so for example, Intel cannot make chips for AMD and vice versa sockets.
The cross -license agreement stipulates that if AMD or Intel merges with another company or are acquired, the agreement ends and will oblige the flea manufacturer remaining to negotiate a new agreement with the new owner. If Broadcom was to buy Intel, it could create an interesting scenario.
AMD could negotiate with Broadcom in order to better challenge Nvidia, but as Tom material Underlines: “At present, Broadcom, armed with CPU processors and AI, is a more important competitive threat to AMD than Intel, the latter does not have a strategy of Claire.” In terms of market capitalization, AMD is currently ranking as the 83rd largest company in the world, while Intel is in the 165th. Broadcom, however, is well in advance in 11th place, which shows its influence of industry.
A license agreement between AMD and Broadcom would be in the interests of the two companies, but the form that could take is the assumption of anyone at the moment.
