Intel’s CEO Departure Opens Door to Fresh Deal Discussions

But Intel has only announced a few big clients for its foundry operations, and production of high-end chips isn’t large enough to make the endeavor profitable. Perhaps worse, sales have been sliding — an ominous sign for a business pushing into a big new industry segment.

Though Intel might be able to find a suitor for its product division, the foundry operation would be a harder sell. The largest US chip foundry is GlobalFoundries Inc., which has its own struggles. That company lacks cash or experience in running the type of manufacturing that Intel’s factories were built for.

It’s also unclear if a new Intel CEO — or the rest of the board — would be ready to dismantle a company that once ruled the chip industry. And the move would complicate Intel’s ability to get $7.9 billion in federal grants under the US Chips and Science Act, a law aimed at revitalizing domestic chip production.

A representative for Santa Clara, California-based Intel declined to comment.

2. Lure a Suitor Like Qualcomm

Bloomberg has reported that Qualcomm considered an Intel acquisition, but its interest had cooled as of last week. The complexities associated with acquiring all of Intel made a deal less attractive, people familiar with the matter said at the time.

But Qualcomm could consider buying pieces of Intel, such as the product business. Like much of the chip industry, Qualcomm doesn’t manufacture its own semiconductors. Instead, it designs chips and relies on partners like TSMC to handle production. That’s why it’s unlikely to want Intel’s factory operations.

Broadcom Inc. previously assessed whether to pursue an Intel deal, but it didn’t move ahead with talks, Bloomberg reported in September. When Broadcom CEO Hock Tan was asked that month if he might seek a chip acquisition, he said his hands were full integrating the purchase of VMware.

Any big chip merger also would face regulatory hurdles around the world — something both Qualcomm and Broadcom know well. Broadcom scuttled an attempt to buy Qualcomm after the deal was blocked by President Donald Trump in 2018.

3. Selling Altera

Intel’s Altera unit, acquired in 2015 for about $17 billion, makes chips that can be reprogrammed for different uses after they’re manufactured. Intel has held negotiations about selling a portion of the business to financial investors, a potential step toward an initial public offering for the unit.

Buyout firms such as Francisco Partners, Bain Capital and Silver Lake Management have been studying offers to invest in Altera. Last month, though, Bloomberg reported that Lattice Semiconductor Corp. was considering making an offer for all of Altera. Lattice is working with advisers and is seeking a private equity backer as it explores a potential bid, people familiar with the process said.

Whether or not such a deal moves forward, the idea of unloading the entirety of Altera could have fresh momentum under a new Intel CEO.

4. An Apollo Investment

Apollo offered to make a multibillion-dollar investment in Intel earlier this year. The New York-based firm indicated that it would be willing to make an equity-like investment of as much as $5 billion, Bloomberg reported in September. But negotiations didn’t lead to an announcement.

Apollo has an existing relationship with Intel. The firm agreed in June to buy a stake in a venture that controls an Intel chip plant in Ireland for $11 billion. That makes it more likely that the partners will engage in further talks.

5. A Mobileye Transaction

Intel acquired Mobileye, a maker of self-driving technology, in 2017. Though the business went public in 2022, Intel still owns most of the company. That situation has the potential to change under a new CEO.

In September, Intel said it isn’t “currently” planning to divest its majority stake in Mobileye. But Bloomberg reported earlier in the month that the chipmaker was contemplating options for its 88% holding.

Intel could offload some of the stake in the public market or via a sale to a third party, people familiar with the discussions said. In any case, it’s unlikely to be a winning investment for Intel, which paid about $15 billion for Mobileye. The company currently has a market value of $14.1 billion.

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