In the PC era, Intel, once the dominant industry, and in the era of smart phones, qualcomm has obtained the dominance of Intel. But at the moment, both company's chip business "to" into some kind of trouble, shareholders demanding high reduction to common denomiator chip business. Intel and qualcomm and Wall Street's voice think if merger, can bring about significant synergistic effect, and promote the industry of multiple markets, so it's worth a try.
According to yahoo finance, the investment research institution "Market Realest" qualcomm research report was released a few days ago, it considers qualcomm and Intel merger can produce a win-win effect.
, the agency noted some of Wall Street analysts also believe that if qualcomm and Intel or merger of cooperation, can bring more shareholder value.
Qualcomm has always been dominant in the field of mobile processor, but over the past year, the chip business downturn, in addition to rival mediatek's rapid emergence, "old customers such as samsung, huawei, apple launched its own processors, get rid of the dependence on qualcomm. Qualcomm's shareholders require that the lucrative patent authorization and chip design and manufacturing business spin-off.
These organizations, points out that the chip business spin-off for qualcomm is not a perfect solution, and Intel's merger can bring more imagination space.
If qualcomm and Intel merger, which will become the semiconductor industry is the largest ever acquisition, and in the data center, personal computers, mobile chips, and other fields has a big enterprise. And in the emerging Internet of things chip market, the new company will become the leading players.
Lagging behind in mobile chip market, Intel, has been struggling to establish a presence, and Intel are still on the product significantly lagged behind the qualcomm chip ARM architecture. If the two merged, Intel access to qualcomm mobile processor technology, become the leader in this field.
Currently in the field of Internet of things, qualcomm and Intel is launched, hopes to become a iot standard chip makers. Also, the two companies merged, would create a huge advantage in the field of Internet of things.
In the field of data center (server), qualcomm also introduced a dedicated server of ARM processor, hope to be able to get a server chip share in cloud computing era. If two companies merge, the new company will be at the same time in the field of x86 and ARM processor has perfect product line, the old rival AMD will be kicked out of the market.
A merger can also improve the utilization rate of Intel semiconductor factory. Before the media has reported that due to the decline in the global PC market, Intel has its own semiconductor production line capacity is insufficient, have begun to external to undertake OEM orders chip.
Future if successful merger, rely on the Intel semiconductor factory technology upgrading, qualcomm can at a lower cost to produce high performance processor, this will let qualcomm to get rid of the dependence on the external contract manufacturers, such as TSMC.
Of course, as two big companies of semiconductor industry, the deal will not be plain sailing. First of all, this will be the United States government antitrust scrutiny. You know in the past, Intel has encountered in places such as Europe, South Korea, the United States many antitrust litigation.
In the Chinese market, the m&a will also face the challenge. Although Intel in China has a good external environment, qualcomm is not ideal, however, had already paid the fines for antitrust investigations, and were forced to adjust royalty charge standard.
These organizations, points out that if you have any hope of propulsion, the merger then qualcomm will split the first patent licensing business for mobile communications, to perfect the business line of the combined entity.
With smart phone giant into the chip design and manufacturing, and PC chip market downturn, the global semiconductor industry has raised a hot wave of a merger and reorganization. This year, for example, Intel spent $16.7 billion for silicon valley's chip maker Altera.
It is interesting to note that recently the science and technology media also reported that the industry should buy qualcomm as Intel's old rival AMD, and strengthen the competitive power of the and Intel. According to the report, qualcomm chief executive Steve Mollenkopf - has said the company it is necessary to enter the data centers and server market through acquisitions.
