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Highlights:
- Intel Rejects Arm’s Bid: Intel has reportedly turned down a proposal from Arm Holdings to buy its product division.
- Intel's Restructuring Plans: The company is restructuring, with plans to make its chip manufacturing unit a standalone entity.
- Ongoing Speculation: Intel has faced rumors of potential tie-ups, including a possible approach from Qualcomm earlier this month.
Intel Corporation (NASDAQ:INTC) has reportedly turned down an acquisition proposal from Arm Holdings to purchase its product division. According to a Bloomberg report, citing an individual familiar with the matter, the semiconductor giant informed the Wall Street-listed UK firm that the business is not for sale. Neither Intel nor Arm have publicly commented on the approach.
The rejection comes as Intel undergoes a strategic overhaul in an effort to stabilize its position in the competitive semiconductor market. Following disappointing earnings in August, Intel is restructuring its operations, including plans to transform its chip manufacturing unit into a standalone business entity. The company’s product group, which Arm was reportedly eyeing, primarily focuses on selling chips for computers and servers, while the other division handles manufacturing.
Intel, which once dominated the global chip industry, is grappling with declining revenue and increased competition from newer players. The US-based company is executing a range of cost-cutting measures, including slashing 15% of its workforce—equivalent to roughly 15,000 jobs—halting dividend payouts, and putting a hold on new factory developments in Poland and Germany. These moves are part of Intel's broader effort to realign its business and streamline operations.
The reported interest from Arm comes as Intel has been increasingly seen as a potential target for strategic tie-ups. Earlier this month, rival chipmaker Qualcomm (NASDAQ:INTC) was rumored to have approached Intel regarding a potential partnership. However, no formal offer or discussions have been confirmed by either company.
Arm Holdings, which is majority-owned by Japanese conglomerate SoftBank Group, continues to explore strategic opportunities in the rapidly evolving chip market. The company, known for designing microprocessors widely used in smartphones and other devices, is expanding its focus as it looks to increase its presence in other segments, such as data centers and artificial intelligence.
As of Friday morning, Intel’s shares were down 1% in pre-market trading, while Arm’s stock price remained largely unchanged.
