US Policymakers Open to Potential Intel Merger Deal

US government is reportedly considering a potential merger for Intel as a solution to the company's financial struggles.

The US Commerce Department is reportedly exploring options to address Intel's financial difficulties, including the possibility of a merger.

US Policymakers Open to Potential Intel Merger Deal

Intel's chipmaking capabilities are crucial for the US semiconductor industry, but the company's recent financial downturn has raised concerns. Beyond financial aid, the government is considering a merger as a long-term solution.

Rumors of a potential acquisition by Intel, involving companies like ARM and Qualcomm, have circulated recently. Qualcomm's CEO expressed interest, with a decision expected after the US elections. According to a report by Semafor, US policymakers are open to a merger, even suggesting that domestic companies like AMD and Marvell could be potential partners.

While a merger could be a historic event for the chip market, the most likely scenario might involve selling Intel's chip business to Qualcomm, ARM, or even AMD, as the US government prioritizes Intel's foundry operations.

The CHIPS Act promises billions in grants and loans for US semiconductor companies, but delays in receiving these funds have exacerbated Intel's financial challenges. Despite exceeding expectations in its Q3 2024 earnings, Intel still faces a long road to recovery.

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