In September, according to people familiar with the matter, wireless chip giant Broadcom is quietly evaluating potential acquisition plans for chip manufacturing giant Intel.
However, recently Broadcom CEO Hock Tan responded to the market rumors in a media interview. He said that he is not interested in acquiring the troubled competitor Intel because he is busy building Broadcom into a strong player in the field of AI.
Hock Tan pointed out that Broadcom is working hard to increase its market share in the field of AI chips. He said that this task occupies most of his resources and attention, and he has not received an invitation to participate in the acquisition of Intel. Hock Tan also mentioned that he has lost interest in hostile takeovers since the US President blocked Broadcom's acquisition of Qualcomm on the grounds of national security in 2018. At that time, Broadcom's registered place was still in Singapore, but it has since been moved to the United States.
In fact, Broadcom has always been very active in the field of mergers and acquisitions. Hock Tan intends to build Broadcom into a major merger and acquisition giant in the semiconductor industry.
The market capitalizations of Broadcom and Intel have shown opposite trends since the AI boom at the end of 2022. This year, Broadcom's market capitalization has doubled to $1.09 trillion, while Intel's market capitalization has fallen by more than half to $87.1 billion.