According to a report, struggling US chip company Intel could soon get a cash injection. According to insiders, US financial investor Apollo Global Management is considering investing up to five billion dollars in the semiconductor manufacturer.
That was reported by Bloomberg on Sunday based on a person familiar with the matter. Apollo has indicated in recent days that it is prepared to invest billions in Intel.
This would amount to a corporate-style investment. According to the report, Intel executives are currently reviewing Apollo’s proposal. However, the discussions have not yet been completed. Both the scope of the potential investment and the entire deal could still change or fall through, the report said. Neither Apollo nor Intel initially responded to a Reuters request for comment.
Rival Qualcomm made a takeover bid
Earlier this year, Apollo announced it would buy a 49 percent stake in a joint venture for Intel’s new manufacturing facility in Ireland for $11 billion. On Friday, it was also announced that rival Qualcomm had expressed interest in acquiring Intel.
Qualcomm CEO Cristiano Amon is said to be personally involved in the negotiations, but the talks are still in the early stages and no offer has been made. A Qualcomm bid for Intel would be the largest takeover attempt in the sector since 2018, when Broadcom wanted to buy Qualcomm for $142 billion. However, then-US President Donald Trump blocked it on national security grounds.
Shares fell 57 percent
Once the world’s largest chipmaker, Intel, is currently in dire straits. After the smartphone revolution, the company has largely missed out on the boom in artificial intelligence (AI) and is struggling with declining demand for classic PC processors. Intel shares have already lost 57 percent of their value this year.
Intel recently postponed the construction of a planned chip factory in Magdeburg for two years. The project, with a planned investment volume of 30 billion euros and around 3,000 jobs, was originally supposed to start production in 2027.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
