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Intel reportedly eyeing Broadcom to thwart Qualcomm buyout

Intel is looking to nullify Broadcom's Qualcomm takeover efforts. (Source: Android Police)
Intel is looking to nullify Broadcom's Qualcomm takeover efforts. (Source: Android Police)
Intel is apparently viewing the possible acquisition of Qualcomm by Broadcom as a potential threat to its communications semiconductor business according to a report by The Wall Street Journal. The company is also reportedly exploring various fallback options in the event the Qualcomm takeover materializes.
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Looks like Intel is not taking the recent developments in the Broadcom-Qualcomm hostilities lightly and is in fact, mulling to buyout Broadcom to thwart any competitive threats to its communications semiconductor plans. While Intel could not carve a niche for itself in the smartphone SoC space, conceding it to Qualcomm, the chipmaker has resolved to invest heavily in upcoming 5G technologies. Intel fears that Broadcom's hostile takeover of Qualcomm could dampen its spirit of being a major player in the 5G revolution.

If the Broadcom takeover of Qualcomm does indeed materialize, Intel is reportedly looking for potential buyout of the combined Broadcom company. The Wall Street Journal writes, "Intel is watching the takeover battle closely and is eager for Broadcom to fail [at acquiring Qualcomm] as the combined company would pose a serious competitive threat, the people said." The WSJ also reports that Intel could be looking at other options as well such as smaller acquisitions to remain competitive. Intel is reportedly considering a minimum pre-emptive price of US$109 billion for Broadcom to help prevent the merger.

Broadcom has been trying to acquire Qualcomm since last November for US$130 billion in what would have been the largest technology acquisition in history but Qualcomm has refused to budge thus far. To complicate matters, Qualcomm is fighting a costly legal dispute with Apple over patent royalties and on top of it, is in the process of acquiring NXP Semiconductor making matters a bit too complicated. Recently, the Committee on Foreign Investment in the US (CFIUS) has expressed concerns that Qualcomm's acquisition by Broadcom can ferry Qualcomm's lead in 5G technology to Chinese shores given Broadcom's ties with ZTE and Huawei, thus potentially compromising national security. Broadcom, however, is refuting these claims and is planning to redomicile to the US and offer to train US workers in order allay fears of regulatory bodies and the US Government. 

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Vaidyanathan Subramaniam
Vaidyanathan Subramaniam - Managing Editor - 1418 articles published on Notebookcheck since 2012
Though a cell and molecular biologist by training, I have been drawn towards computers from a very young age ever since I got my first PC in 1998. My passion for technology grew quite exponentially with the times, and it has been an incredible experience from being a much solicited source for tech advice and troubleshooting among family and friends to joining Notebookcheck in 2017 as a professional tech journalist. Now, I am a Lead Editor at Notebookcheck covering news and reviews encompassing a wide gamut of the technology landscape for Indian and global audiences. When I am not hunting for the next big story or taking complex measurements for reviews, you can find me unwinding to a nice read, listening to some soulful music, or trying out a new game.
contact me via: @Geeky_Vaidy
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2018 03 > Intel reportedly eyeing Broadcom to thwart Qualcomm buyout
Vaidyanathan Subramaniam, 2018-03-11 (Update: 2018-03-11)