Intel’s foundry ambitions could be slowed by lack of deal targets – Reuters

SourceReuters
SectorEconomy
CountryUAE

An Intel Tiger Lake chip is displayed at an Intel news conference during the 2020 CES in Las Vegas, Nevada, U.S. January 6, 2020. REUTERS/Steve Marcus/File Photo

July 21 (Reuters) – For Intel Corp (INTC.O) Chief Executive Pat Gelsinger, an obvious strategy in his high-stakes bid to make the company a player in producing chips for others would be a transformational acquisition, analysts say.

But there is just one problem – a dearth of acquisition targets for Intel to buy.

The conundrum came into focus last week when the Wall Street Journal reported that Intel was considering a purchase of chipmaker GlobalFoundries for $30 billion.

Intel reports earnings Thursday, and despite a booming PC market, analysts expect a 9.8% drop in sales to $17.8 billion as Intel loses share to rivals like Advanced Micro Devices Inc (AMD.O).

Buying a foundry would give Intel “real customer support people, as opposed to technologists who have mainly been told what to do by management,” said Dan...read more...