We all know that Intel is crowned head of chipmakers for personal computers in the world but sadly, it really has no presence in the mobile industry. So now according to the latest report, if Broadcom’s plan to take over Qualcomm. If it succeeds, it may itself get acquired by Intel.
According to the Wall Street Journal “Intel is watching the takeover battle closely and is eager for Broadcom to fail [at acquiring Qualcomm] as the combined company would pose a serious competitive threat, the people said.”
If Broadcom doesn’t succeed to acquire Qualcomm, Intel will then be forced to acquire Broadcom. The initial buy-out price is wrapped at $109 billion.
The funny part of this game is, Not only Intel, the US government also wants, Broadcom doesn’t get success to acquire Qualcomm.
The Govt. see Broadcom as a foreign company as it is legally considered to be based in Singapore. But most of its employees and offices are in the US.
However, the committee also thinks that the takeover will cause a “reduction in Qualcomm’s long-term technological competitiveness and influence in standard setting (which) would significantly impact US national security”.
The acquisition will debilitate Qualcomm’s position as a technological leader and “leave an opening for China to expand its influence on the 5G standard-setting process” the committee said recently.