Intel Continues Pursuing M&A Despite GlobalFoundries Acquisition Failure... Collaboration Needed

Semiconductor Shortage Resolution Expected to Be Difficult

[Asia Economy New York=Correspondent Baek Jong-min] U.S. semiconductor company Intel has expressed its intention to expand through mergers and acquisitions. It also predicted that the semiconductor shortage will not be resolved soon.

Pat Gelsinger Intel CEO
[Photo by Reuters]

Pat Gelsinger, Intel's Chief Executive Officer (CEO), said in an interview with the Wall Street Journal on the 19th (local time), "The trend of consolidation in the semiconductor industry will continue. We hope to be the consolidator."

This was a response to the fact that the acquisition of foundry company GlobalFoundries, which CEO Gelsinger had been pursuing, was virtually canceled. GlobalFoundries is known to have turned to an initial public offering (IPO) rather than merging with Intel.

Intel's acquisition of GlobalFoundries had been regarded as a deal that could reshape the semiconductor industry. If Intel acquired GlobalFoundries, Samsung Electronics, the second-largest foundry company, might have had to worry about Intel's pursuit.

When asked about the GlobalFoundries acquisition, CEO Gelsinger avoided a direct answer and only said, "Intel is an M&A buyer."

He emphasized that mergers and acquisitions are a survival strategy. CEO Gelsinger argued, "The investment cost for advanced semiconductor manufacturing is increasing significantly, and the number of related companies is decreasing. We need to join forces to secure economic viability."

Intel's decision to entrust graphic chip production to Taiwan's TSMC, announced a day earlier, to compete with rival Nvidia is interpreted in a similar context.

CEO Gelsinger also mentioned that M&A is not the only strategy for Intel's revival. He explained that building advanced factories and refining manufacturing processes are also necessary.

CEO Gelsinger particularly predicted that despite investments by most semiconductor companies, the semiconductor shortage will not disappear easily. He said, "I earnestly look forward to the day when we can say 'we have enough parts.'"

This content was produced with the assistance of AI translation services.