Will chip king Intel soon become Qualcomm Inside?
Once upon a time, a long, long time ago, Intel reigned unchallenged at the top of the processor world. The innovation machine from California supplied the central brains for PCs, servers and data centers for decades and was practically synonymous with computers.
The fall of a giant
But times have changed. The former giant is faltering – and now there is a sensation: Qualcomm, the specialist for mobile chips, could take over Intel. Yes, you read that correctly. Qualcomm, the company that builds Snapdragon processors for smartphones and tablets, wants to swallow up the big “blue giant” Intel. I could hardly believe it. Of course, Intel is no longer what it used to be.
Innovations are lacking, and while competitors such as AMD and especially TSMC are happily overtaking Intel, the chip manufacturer is fighting with itself. For years, mistakes have been made, technologies have been missed, strategies have been botched. And now the unthinkable is looming: Intel is becoming a takeover candidate. It is almost ironic that Qualcomm is playing the role of the savior in shining armor – the David who is supposed to save the stumbling Goliath.
Infographic Microchips: Samsung and Intel dominate the semiconductor market Imagine: Qualcomm, the mobile communications specialist, would get its hands on the x86 technology that was the heart of the PC industry for decades. Phew.
Intel’s infrastructure
Qualcomm would gain access to Intel’s huge manufacturing facilities, which – although no longer quite as cutting-edge – still have impressive capacities. It’s like the little brother suddenly getting the keys to the Ferrari. But that’s not all: Intel, the decades-old giant that probably never took Qualcomm seriously, could soon become an appendage of the smartphone king. Of course, there are still some hurdles – for example the regulators.
But at a time when the USA is desperately trying to revive its semiconductor industry, such a deal could even be met with approval. “America first”, also in the chip sector. Qualcomm could succeed in pulling Intel out of its slump – or at least using the parts that are not yet completely rusty.
But one thing must not be forgotten: Qualcomm may have a well-filled war chest, but the money for the deal has to come from somewhere. And Intel is a tough nut to crack. What is left when Qualcomm works its way through the Intel pie piece by piece and gets rid of unusable parts? It’s like putting a colossus on a diet so that it just fits into your own portfolio.
We’ve seen that before. Intel has lost so much of its appeal in recent years that this takeover idea almost seems like a natural progression of events. The former giant on shaky ground, rescued by a company with its roots in the mobile sector. Qualcomm in the fast lane – and Intel as a passenger, reflected somewhere in the rearview mirror. It is the end of an era and the beginning of a chapter in which the king of PCs makes way for the king of smartphones.
As the saying goes: “Sic transit gloria mundi” – so passes the glory of the world. Or, in this case, the glory of a giant called Intel.
