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

intel targets reuters ambitions foundry
UAE
  • Date: 22-Jul-2021
  • Source: Reuters
  • Sector: Economy
  • Country: UAE
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Intel’s foundry ambitions could be slowed by lack of deal targets – Reuters

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).