Acquisitions and divestment of Intel assets

2024

Qualcomm changed its mind about buying Intel because the company is on the verge of collapse

On November 26, 2024, it became known that Qualcomm had changed its mind about buying Intel as a whole. This is explained by the large number of difficulties associated with a potential deal, which could become one of the largest in the technology sector.

The fact that Qualcomm is revising plans to take over Intel, reports, Bloomberg referring to information received from knowledgeable persons. It is noted that Intel, which occupies a dominant position in the market for processors with x86 architecture, is on the verge of collapse. The corporation is losing its share in favor, and AMD positions in the field of artificial intelligence leave much to be desired. Intel's share price more than doubled in 2024, with the corporation grappling with manufacturing challenges and stiff competition.

Qualcomm changed its mind about buying Intel

By buying Intel, Qualcomm would be able to enter new markets for itself, including personal computers, network devices and car chips. However, the transaction faced numerous financial, regulatory and operational difficulties. We are talking, in particular, about a long and comprehensive antitrust audit in different countries, including China, which is one of the key markets for both companies. But against the background of tough US sanctions, the PRC is actively developing its own semiconductor industry in order to reduce dependence on foreign suppliers.

In addition, in the event of an entire takeover of Intel, Qualcomm would have to deal with unprofitable units of the purchased corporation. At the same time, there is no guarantee that Qualcomm will be able to succeed in these areas. Therefore, it was decided to postpone the transaction. Reuters notes that negotiations between the parties may be resumed later. Alternatively, the takeover of part of Intel is called.^[1]

Sale of interest in ARM

During the second quarter of 2024, Intel fully sold its stake in ARM. This was reported in mid-August 2024 by Bloomberg , citing documents filed with   the US Securities and Exchange Commission (SEC). Read more here.

2023: Sale of 10 divisions in 3 years due to lack of money

On October 30, 2023, Intel announced an agreement to sell the silicon photonics division. The buyer was the American company Jabil, but the financial terms of the transaction as of the specified date were not disclosed.

The structure sold specializes, in particular, in optical transceivers. Jabil, which provides contract design and electronics manufacturing services, will be able to strengthen its position in the data center hardware solutions market once the deal is complete. Through its photonics business unit, Jabil enables organizations to simplify the development and deployment of optical networking solutions. At the same time, customers are provided with a full range of servants, including component design and system assembly.

In turn, Intel, having got rid of the silicon photonics division, will receive additional opportunities to optimize the organizational structure. Due to lack of money, the corporation is gradually getting rid of non-core assets. In about three years (by the end of 2023), Intel sold or closed about ten structures. These include the Optane drive and NAND flash business, as well as server manufacturing. In addition, the corporation abandoned the development of the modem direction, the production of compact computers of the NUC series, sold its stake in the business of producing photo masks, stopped the production of ASIC miners, closed the Pathfinder for RISC-V program, etc.

We are excited to have an agreement with a world-class supplier like Jabil. We look forward to working closely with Jabil, our customers and suppliers to ensure a smooth transition as Intel shifts its focus to silicon photonics components for existing markets and new applications, says Safroadu Yeboah-Amankwah, Senior Vice President and Director of Strategy at Intel.[2]

2022: $5.4 billion purchase of chipmaker Tower Semiconductor

On February 15, 2022, Intel announced the purchase of chipmaker Tower Semiconductor for $5.4 billion. As part of this deal, the American corporation is expanding its production capacity amid an acute shortage of chips. Read more here.

2021: Buying the chip development team from Centaur Technology for $125 million

VIA Technologies will give Intel a development team from its x86 processor R&D subsidiary Centaur Technology. The corresponding agreement was announced in early November 2021. Read more here.

2020

Cloudera bought all its shares from Intel for $314 million

On December 23, 2020, Cloudera announced a buyout from Intel of all its shares for $314 million. We are talking about about 26 million securities that were acquired by the developer of the corporate cloud at a price of $12.05 apiece. Read more here.

MediaTek buys Intel's Enpirion Power Solutions unit for 2.4 billion yuan

In mid-November 2020, it became known about the sale of the IntelEnpirion Power Solutions division to MediaTek. The transaction cost was about 2.4 billion yuan (about $85 million at the exchange rate at the time of the agreement). Read more here.

Purchase of SigOpt AI optimization software developer

At the end of October 2020, Intel announced the purchase of SigOpt. The deal is due to close in the fourth quarter of 2020, but its terms have not been disclosed. The US semiconductor giant plans to use startup technology in its hardware solutions to help developers develop their AI tools. Read more here.

Sale of NAND flash memory business to SK Hynix

On October 19, 2020, Intel announced the sale of its NAND flash memory business to South Korean company SK Hynix for $9 billion. Under the terms of the agreement, the buyer will pay $7 billion by the end of the year, and the remaining amount will be transferred to the American technology giant by March 2025. Read more here

Purchase of WiFi developer Rivet Networks

On May 20, 2020, Intel announced the acquisition of WiFi developer Rivet Networks, but did not disclose the cost of the transaction. Read more here.

Purchase of Moovit for $900 million

On May 4, 2020, Intel announced the purchase of Moovit for $900 million. The deal expands the U.S. corporation's reach in Israel, where it has spent billions to acquire companies and where it has a chip factory. Read more here.

2019

Purchase of the developer of processors for training AI Habana Labs for $2 billion

December 16, 2019 Intel announced the purchase of Habana Labs for $2 billion in order to strengthen its position in the global market - AI the processors volume of which is expected to exceed $25 billion by 2024. More. here

Buying from Pivot Technology Solutions Smart Edge Development Business

On October 15, 2019, Intel announced the acquisition of the Smart Edge peripheral computing platform development business from Pivot Technology Solutions. The deal worth $27 million is scheduled to close in the fourth quarter. Read more here.

Sale of modem business to Apple for $1 billion

On July 25, 2019 Intel , she announced the sale of her modem business for. smartphones We are talking about chips used to connect devices to cellular networks.

I bought the corresponding assets for $1 billion. Apple The perimeter of the deal included more than 17,000 patents for wireless technologies, including various protocols for cellular communication standards and modem architecture.

In addition, about 2.2 thousand Intel employees will move to Apple. The buyer will also receive equipment and rental space that is listed behind the corporation.

At the same time, Intel will continue to develop modems for computers, IoT devices and self-driving cars. Intel plans to focus on developing technologies for fifth-generation (5G) mobile communications for network operators, telecom equipment manufacturers and cloud service providers, according to the company's CEO Bob Svon.

Apple and Intel expect to close the deal in the fourth quarter of 2019.

By July 2019, the iPhone uses Intel modems, but after the conclusion of the settlement agreement between Apple and Qualcomm, the iPhone manufacturer agreed to purchase partner components for at least another six years - this is the term of the new license agreement. After the announcement of the agreement between Apple and Qualcomm, Intel announced the abandonment of the development of 5G modems and plans to focus on equipment for 5G networks.

Earlier, the planned deal was reported by The Wall Street Journal, citing sources. According to them, negotiations between the two companies continued for more than a year, but they were interrupted after the conclusion of an agreement between Apple and Qualcomm, but then were resumed.^[3]

The newspaper notes that the deal with Intel is of strategic and financial importance to Apple, which seeks leadership in the introduction of 5G technology. In particular, the company will gain access to Intel's long-term engineering experience, which will save it the years it needs to create its own modems.

Purchase of switching chip developer Barefoot Networks

On June 10, 2019, Intel announced the acquisition of switching chip developer Barefoot Networks. Read more here.

Purchase of video processing chip developer Omnitek

On April 16, 2019, Intel announced the acquisition of video processing chip developer Omnitek. Read more here.

Buying chip developer Ineda

On February 18, 2019, US processor giant Intel announced the acquisition of Indian semiconductor company Ineda Systems to continue development of the discrete graphics chip (GPU) family. Read more here.

2018

Micron buys out Intel's stake in IM Flash Technologies for $1.5 billion

On October 18, 2018, Micron Technology announced a $1.5 billion buyout of Intel's stake in IM Flash Technologies. This deal indicates Intel's desire to abandon memory production. Read more here.

Buy NetSpeed Processor Tool Developer

In September 2018, Intel announced the acquisition of NetSpeed ​ ​ Systems, but did not name the value of the transaction. Through this purchase, the American processor giant intends to reduce chip development costs. Read more here.

Purchase of the developer of tools for creating AI algorithms Vertex.AI

In August 2018, Intel announced the acquisition of Vertex.AI. The company did not disclose the cost and other terms of the agreement. After completing all formalities regarding the sale of Vertex.AI, the startup will join the Movidius project as part of the Intel Artificial Intelligence Products Group. Read more here.

Purchase of the developer of specialized chips eASIC

On July 12, 2018, Intel announced the acquisition of specialized chip developer eASIC. With this transaction, the buyer continued to implement a strategy to diversify the business outside of central processing units (CPUs) for computers. Read more here.

2017

$1 billion investment in AI startups

In September 2017, Intel named the amount of its investment in startups engaged in artificial intelligence (AI) technologies. The American processor giant is developing business in this market largely through acquisitions. Read more here.

Intel buys Mobileye for $15 billion

On March 13, 2017, Intel announced the purchase of automotive IT developer Mobileye for more than $15 billion. With this deal, the American semiconductor giant showed its high interest in self-driving cars. Read more here.

2010

McAfee Purchase

In August 2010, Intel agreed to acquire McAfee. The transaction amount is $7.68 billion. For each McAfee share, the corporation offered 60% more value of securities at the close of trading on August 18. After the announcement of the deal, McAfee's stock price jumped 48% to $47.42 apiece.

As stated in Intel, modern software is not able to protect well enough from computer threats when using mobile phones, televisions, ATMs and other devices connected to the global network. McAfee will need to resolve this issue. Upon completion of the transaction, McAfee will be part of the Intel Software and Services Group, which develops platforms and software. The head of this unit is Renee James.

The deal won approval from the boards of both companies. When it is planned to be completed, it is not reported, but for this the parties will have to obtain the consent of the shareholders of McAfee, located, like Intel, in Santa Clara, California, and regulatory authorities.

Texas Instruments Division Purchase

In August 2010, Intel announced that it had signed an agreement to purchase Texas Instruments' cable modem chip division. As part of the agreements reached, all employees of the acquired division will be transferred to work in the Intel Digital Home Group. According to Bob Ferreira, CEO of Cable Segment, Intel Digital Home Group, the deal will allow Intel to bring better products to market and strengthen its position as a provider of semiconductor solutions for the cable television industry. Intel is currently releasing Intel CE "chip-based systems" for consumer electronics, including home appliances. The company plans to combine these solutions with the TI Puma family of chips that support the Data Over Cable Service Interface Specification (DOCSIS) standard.

Purchase of Infineon Mobile Processor Division

In August 2010, Intel announced that it had signed an agreement to purchase a division of Germany's Infineon Technologies, Wireless Solutions (WLS), in cash for $1.4 billion. The transaction is scheduled to close in the 1st quarter of 2011. After the acquisition, WLS will function as a separate business, while maintaining the base of existing customers. Infenion technologies will be used in laptops along with Intel Core processors, as well as in all kinds of devices based on Intel Atom processors, including smartphones, netbooks, tablets and embedded solutions.

The Mobile Chip Division (Wireless Solutions) was one of five areas of Infineon Technologies. It is engaged in the production of signal processors, chips for radio communications and power control, Bluetooth and GPS receivers, analog and digital tuners for stationary and mobile reception of television signals, electronic components, as well as complex hardware platforms with accompanying software for mobile phones operating according to GSM, EDGE, HSPA and LTE standards.

2012: Acquisition of Cray network assets

On April 24, 2012, Intel announced its intention to purchase for $140 million the network assets of Cray, a well-known manufacturer of supercomputing systems. The deal is aimed at strengthening the position of the processor giant in the High Performance Computing (HPC) segment.

The Cray division acquired by Intel was developing high-speed connections to combine supercomputers. The company's engineers account for Gemini technology and the Aries family of products, which are designed for the next-generation Cascade Cray laboratories based on Intel Xeon processors. Along with intellectual property, Intel will have a team of 74 Cray employees working in the network division.

Cray itself, the deal with Intel is profitable exclusively from a financial point of view. The company intends to spend the proceeds on the implementation of previously launched projects to create supercomputers. Thus, there is every reason to believe that Cray will be able to withstand the deadlines for creating products in strict accordance with the roadmap. At least Peter Ungaro, president and CEO of Cray, promised to keep all projects up to date without exception.

One way or another, for now, Cray remains a key supplier of HPC systems. Some of its supercomputers are based on the processors of Intel's closest competitor, AMD. For example, Oak Ridge National Laboratory (ORNL) in the state of Tennessee houses Jaguar. In the November 2011 list of the 500 largest supercomputers in the world, it ranked third.

Cray's closest competitors are IBM, HP and Fujitsu. In the fourth quarter of 2011, Cray's profitability and profitability indicators deteriorated significantly compared to the same period of the previous year. Largely due to interruptions in the supply of AMD Opteron processors.

2015

Acquisition of Lantiq

On February 2, 2015, Intel announced that it had signed a final agreement to acquire Lantiq.

The transaction is subject to standard closing and approval terms by the authorities. It is expected that it will be completed in 90 days. Terms of the deal were not disclosed.

Lantiq Office, 2014

The deal will strengthen Intel's position in the cable subscriber gateway market, according to its participants, will expand the product range for other product segments, including DSL solutions, fiber optic systems, LTE-enabled products and smart Internet of Things routers.

The company's specialists plan to offer a wide range of network solutions and cloud technologies to OEMs, service providers and developers of new applications for home users. With solutions Intel for, Intel Internet of Things Security development, and Intel technology-based client devices, Intel will be able to offer users new features for home networking.

Buying Altera for $16.7 billion

On June 1, 2015, Intel announced the purchase of Altera for $16.7 billion. Due to this deal, which at the time of its announcement is the largest in the history of the American processor giant, he expects to strengthen his position in the server and Internet of Things markets. Read more here.

1991: LAN Systems Purchase

In 1991, LAN Systems was acquired by Intel and became its division of Intel LANDesk. LANDesk software has evolved within Intel for 11 years, gaining access to all technologies and standards developed by the corporation. Intel LANDesk was shipped as part of Intel servers and motherboards (Intel LANDesk Server Manager, Intel LANDesk Client Manager), as well as a standalone product of Intel LANDesk Management Suite.

See also

• M&A Mergers & Acquisitions
• Cisco Takeovers
• Acquisitions and sale of Microsoft assets
• SAP Acquisitions
• Oracle takeovers
• Acquisitions and divestment of Intel assets
• Acquisitions and divestment of IBM assets

Notes