Chipzilla has been looking at the numbers and is mulling over taking over Broadcom, according to the Wall Street Journal.
The paper also speculated that Intel’s acquisition plans around Broadcom could be motivated by its fears of the major market player a Broadcom-Qualcomm merger would create.
The combined player would create a powerhouse in smartphones and datacentres – areas Intel has ear-marked for future growth.
Qualcomm’s purchase of Dutch automotive chip specialist NXP Semiconductors NV would strengthen its presence in the automotive market, which is an area where Intel wants to be.
Former Apple head and blogger Jean-Louis Gassée thinks that Intel has realised that it needs a seat at the smartphone table.
“Despite troubles with its more advanced manufacturing processes, the company managed to supply some wireless modems for the iPhone 7, 8 and X. Ironically, the alliance was aided by a long-standing and bitter intellectual property dispute between Apple and Qualcomm. If Broadcom’s acquisition of Qualcomm proceeds, the dispute with Apple could disappear”, said Gassée.
“If the dispute is settled, Intel loses its wireless modems deal with Apple. No mobile CPUs plus no modems equal nothing of substance. Broadcom would be in charge – it would hold all the cards. Is it any wonder that Intel wants to find ways to scupper the deal?” Gassée added.
