In August 2021, Intel’s newly appointed CEO, Pat Gelsinger, anticipated a consolidation of the semiconductor industry, convinced that his company would be at the forefront of the movement. Three years later, the prediction was partially correct, except that the hunter finds himself hunted. On September 20, the Wall Street Journal announced that the company was the subject of a takeover bid by its competitor, the American Qualcomm.
It would be the largest transaction in the history of the new technology sector, beyond the 75 billion dollars (67.2 billion euros) paid by Microsoft to acquire the Activision Blizzard video game studios in 2023. The two companies refuse to communicate about The topic, however, was mentioned.
This possible operation occurs at a time when Intel’s capitalization has been reduced by half since the beginning of the year, to around $100 billion, while Qualcomm’s is around $190 billion. The Californian company, which will celebrate its 40th anniversary in 2025, became essential in the early 90s, when it imposed its telecommunications standard, 3G, but also its economic model. It does not produce its own chips (the model says “without fables”factoryless), and derives much of its income from the thousands of patents it charges manufacturers.
New points of sale
If Intel does everything possible to maintain its leadership position in the PC market, Qualcomm is betting on mobile telephony, where the group, with a turnover of $36 billion in 2023, is rapidly consolidating. The domination is such that the San Diego society accumulates fines for abuse of dominant position in numerous states: 850 million euros in China and 826 million euros in South Korea in 2015, 242 million euros in Europe in July 2019… Their relationships are also stormy. with its clients, who criticize it for abusive prices. The main conflict will continue from 2017 to 2019 with Apple, which, for a time, refuses to pay for the use of its licenses. In the end, the Apple brand, which could not do without Qualcomm components, ended up reaching an amicable agreement, paying 4.5 billion dollars.
The smartphone sector may still provide 70% of its revenue today, but the company has not abandoned its ambition to diversify. Since the appointment of Cristiano Amon as head in June 2021, new opportunities have been identified: automotive, where he already has many clients, virtual and augmented reality, industry and computing.
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