Broadcom says it's not interested in Intel

Intel's market value has experienced a significant decline in recent years, from about $198 billion in early 2024 to about $87 billion today, a change that has made the company a potential takeover target. Among the many possible acquirers, Broadcom has drawn attention because of its history of large acquisitions. However, Chen Fuyang, Broadcom's chief executive, recently played down the possibility.

In an interview with the Financial Times, Mr Chen made it clear: "[Broadcom] has never been asked [to buy Intel]." He further noted that he would only consider such a deal if it was enforceable, that is, if someone came and asked Broadcom. Chen Fuyang also mentioned that since Broadcom tried and failed to make a hostile bid for Qualcomm, he has learned a lesson: no more hostile bids.

Back in 2018, Broadcom attempted a hostile $142 billion takeover of Qualcomm, but the move was blocked by then-US President Donald Trump in a rare move. This event not only highlights Broadcom's active attitude in the acquisition market, but also reflects its desire for industry consolidation.

Today, however, Broadcom's strategic focus has changed significantly. The company is currently focusing on providing custom data center processors for artificial intelligence, an area of growing demand that presents new growth opportunities for Broadcom. At the same time, Intel is facing the competitive pressure of process technology and TSMC, as well as the competitive challenge of processor products and AMD.

Despite Intel's dominant position in client computers and its large production scale, these advantages have failed to attract Broadcom's interest. Chen Fuyang pointed out that Broadcom is currently busy providing custom processor business for high-tech companies such as Bytedance, Google, Meta, etc., which are looking for alternatives to Nvidia processors. Broadcom is also working to integrate VMware, which it acquired for $61 billion in 2022.

Judging from industry trends, the combination of Broadcom and Intel may bring some synergies. Broadcom has a deep technology accumulation in AI processors and data center connectivity solutions, while Intel has a broad server and client PC market. However, Chen Fuyang's statement indicates that Broadcom is not currently interested in making such acquisitions, but is more focused on its own AI semiconductor business.

While Intel's declining market value makes it a potential acquisition target, Broadcom CEO Fuyang Chen's comments suggest the company has no intention of buying Intel at this time. Instead, Broadcom is going all out to push its development in AI semiconductors to respond to industry upheaval and seize new market opportunities.