Jakarta, Indonesia Sentinel — Semiconductor giant Intel is reportedly on the verge of being sold following reports of poor performance and mounting debt. Speculation has emerged on the potential of Intel acquisition, with one name emerges as a potential buyer: the billionaire Elon Musk.
The speculation stems from a recent report by market research firm SemiAccurate, which cited an industry insider as being “90 percent certain” that an acquisition of Intel is imminent. The report further suggests that Musk is among the key figures involved in the acquisition talks.
Elon Musk Discussion of Acquisitions
Prominent semiconductor analyst Dylan Patel added fuel to the rumors with a recent post on X (formerly Twitter), hinting at Musk’s involvement.
In his tweet, Patel noted Musk’s recent presence in Florida, specifically at Mar-A-Lago, the Palm Beach residence of President-elect Donald Trump. Musk was reportedly discussing a potential acquisition of Intel with key stakeholders, including GlobalFoundries and Qualcomm, both of which have expressed prior interest in buying the chipmaker.
The discussions may involve garnering support from Trump, as Intel’s financial struggles could have national implications. With debt totaling approximately $50 billion as of September 2024, Intel has also struggled to compete with Taiwan Semiconductor Manufacturing Company (TSMC), a dominant player in the industry.
Given Intel significance as a U.S.-based semiconductor producer, Elon Musk, GlobalFoundries, or Qualcomm might seek government backing for the acquisition to safeguard national technological interests.
Financial Hurdles and Feasibility
If Elon Musk intends to acquire Intel, he would need to surpass its current valuation, estimated at $92 billion. While this is a hefty price tag, Musk’s net worth—reported by Forbes to be $433 billion—puts him in a position to make such a move.
According to CNBC Indonesia, Citibank analyst Christopher Danely suggested that Elon Musk involvement in the acquisition could bring transformative changes to Intel. With Musk’s vast financial resources, Danely believes the billionaire has the potential to revolutionize Intel’s business operations and steer the company in a bold, forward-thinking direction.
However, no formal announcements have been made by Musk, Intel, or the other parties rumored to be involved.
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Implications for the Tech Industry
Should Elon Musk acquisition on Intel take place, it could mark a seismic shift in the tech landscape. Intel’s integration into Musk’s portfolio alongside ventures like Tesla, SpaceX, and Neuralink, could redefine innovation in the semiconductor sector.
As of now, the tech world awaits confirmation regarding the swirling rumor. If its happened, the move could signal a new era for Intel and potentially reshape the global semiconductor industry.
(Raidi/Agung)
