Arab Press

بالشعب و للشعب
Friday, Jun 20, 2025

Intel CEO calls chip maker ‘willing buyer’ as semiconductor industry consolidates

Intel CEO calls chip maker ‘willing buyer’ as semiconductor industry consolidates

Intel Corp. Chief Executive Pat Gelsinger is committed to buying other chip-makers as the industry consolidates, despite a leading acquisition candidate’s plan to go public.

"There will be consolidation in the industry," he said. "That trend will continue, and I expect that we’re going to be a consolidator." Gelsinger, about six months into the CEO job, said he plans to use mergers and acquisitions to support the company’s revival plan.

Intel had been in talks to buy GlobalFoundries, The Wall Street Journal previously reported. The talks cooled as GlobalFoundries focuses on an initial public offering, people familiar with the matter said.


GlobalFoundries now has confidentially filed for an IPO that could value the company at around $25 billion, a person familiar with the matter said. GlobalFoundries is owned by Mubadala Investment Co., an investment arm of the Abu Dhabi government. Reuters previously reported the IPO filing.

The talks with Intel have cooled as the focus around GlobalFoundries turned to an IPO, people familiar with the matter said.

Gelsinger, in the interview, declined to comment on GlobalFoundries directly, though he signaled Intel’s continued interest in deals. "M&A takes willing buyers and willing sellers," he said when asked about Intel’s pursuit of GlobalFoundries, adding "I’m a willing buyer."

Gelsinger, who was involved in about 100 acquisitions in his prior roles as president of EMC Corp. and later CEO of VMware Inc., said he’s looking to bring some of that experience to Intel.

The economics of modern chip production make deals likely, he said. The cost of cutting-edge chip manufacturing has risen rapidly in recent years, narrowing the number of companies in the field and likely pushing them to combine forces, he added.

Consolidation has been playing out for years. Among the most recent big deals, Marvell Technology Group Ltd. last year said it would buy Inphi Corp. and Analog Devices Inc. said it was buying rival Maxim Integrated Products Inc. for more than $20 billion.

Gelsinger said in the interview that the chip-manufacturing industry has been going through a prolonged reshaping. "Ten to 15 years ago, there were a good dozen companies that were making leading-edge technology, and today that’s down to three because it’s extremely capital-intensive and R&D-intensive, and those effects are continuing," he said. A modern, top-of-the-line chip factory, he said, costs more than $10 billion today.

Intel is one of the heavyweights in chip making, alongside Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics Co.

Gelsinger said deals aren’t at the top of an agenda that is focused on turning around the company he took over after a series of missteps. He has committed to spend big on his strategy to expand the company’s manufacturing footprint, add a contract chip-making arm, and catch up to rivals that gained a technological edge in recent years.

Intel is investing $23.5 billion in new factories in Arizona and New Mexico, and nearing completion of a $3 billion expansion in Oregon. Intel has said more investments in the U.S. and abroad are planned.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Saudi Arabia Faces Uncertainty Over Succession After Mohammed bin Salman
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Majority of French Voters View Macron's Presidency as a Failure
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Businessman Mauled by Lion at Luxury Namibian Lodge
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
×