What you need to know
- Intel's CEO discussed the company's willingness to acquire others in an interview.
- The chipmaking industry is generally trending towards consolidation.
- Intel was reportedly interested in an acquisition of chipmaker GlobalFoundries, though that potential deal seems unlikely at this time.
The global chipmaking industry is trending towards consolidation. As companies merge and are acquired, the industry shifts toward tech giants with deep pockets. That's the narrative shared by Intel CEO Pat Gelsinger in a recent interview with the Wall Street Journal.
"There will be consolidation in the industry," said Gelsinger. "That trend will continue, and I expect that we're going to be a consolidator."
Gelsinger is no stranger to bold statements and moves. The CEO has only been in his new role for around six months but has already announced major shifts in Intel's strategy. These changes come as part of the CEO's IDM 2.0 vision and include using third-party foundries for manufacturing and new Intel Foundry Services that will produce chips for other companies.
Intel appears keen to invest in itself and is willing to spend money to acquire other companies. The tech giant was tied to a potential purchase of chipmaker GlobalFoundries in recent reports. It appears that a deal isn't imminent, as GlobalFoundries has reportedly filed to go public.
Gelsinger did not comment on a potential deal with GlobalFoundries. His comments did, however, show that Intel is willing to take part in mergers and acquisitions (M&A), "M&A takes willing buyers and willing sellers. I'm a willing buyer."
The CEO didn't rank mergers and acquisitions as the top priority for Intel, but the company is willing to take part in consolidation to meet its goals.
