Potential thunderbolt in semiconductors: according to consistent information gathered by SemiAccurate, Elon Musk would set up a buyout mechanism for chip giant Intel.
According to this website specializing in revelations and secrets of the semiconductor industry (article only for subscribers), Elon Musk began by sharing the project under development with a handful of SpaceX members just after departure /dismissal of Pat Gelsinger, the company's previous CEO.
Advertising, your content continues below
If this project may seem far-fetched at first glance, the problem is that the SemiAccurate site is a serious publication. Very serious: for example, it was he who revealed that Nvidia would power Nintendo's first Switch in 2016 for example (console launched in 2017), while the rest of the industry did not believe it.
But closer to our topic, as soon as Intel's problems with 10nm began to emerge in 2016, SemiAccurate became concerned about Intel. Before warning in 2019, when Intel was still at the height of its glory (no Apple M1, a stock at almost $60, AMD Zen barely launched, etc.), that the company could collapse in the medium term.
With a share price of less than $20 and a capitalization of only $85 billion when Nvidia weighs $3.27 trillion or AMD $192 billion, it is easy to understand that SemiAccurate's predictions have proven true so far for Intel. . And the sources of Charlie Demerjian, owner and editor-in-chief of the publication, are concrete.
Musk “invited” to take over Intel?
The complete information, which we will not repeat here in full, talks about the evolution of SemiAccurate's trust rating in its sources. Which ended up rising to 90% at the dawn of CES in Las Vegas a little over a week ago.
Advertising, your content continues below
A SemiAccurate source “very highly placed and (possessing) extensive government contacts” assures that certain people mixed in the world of politics and business – understood here to be the entourage of President-elect Donald Trump, perceive Elon Musk as a genius. Who would be the only one capable of relaunching the flagship of semiconductors. Fleuron which is, in turn, the only one that would allow the USA to regain leadership in engraving finesse and high-volume chip production capacity from Asian players (TSMC, Samsung, SMIC, etc.).
-This takeover of Intel by Elon Musk is no more far-fetched than his takeover of Twitter/X, even much less so, since the man is above all a specialist in hardware (Tesla, Space X), rather in social networks. Then, this hypothesis is much less far-fetched than the takeover of Intel by Qualcomm imagined by American journalists. Qualcomm did not have much to gain in terms of design – Qualcomm always preferred ARM to x86. And above all, Qualcomm doesn't care about having factories, having always been fabless (without factories).
A deal under study, but not assured
While SemiAccurate is adamant that Elon Musk and his teams, including senior SpaceX executives, are working on a potential acquisition of Intel, there is no guarantee that this will happen.
Like any buyout, it is first necessary to resolve the cash flow problems but also the terms: ask the Intel board of directors? Proceed with a hostile takeover bid? On this point, SemiAccurate believes that negotiations will be “kept secret until an agreement is finalized with the board/major shareholders to keep the price low.”
Then, the project must also be on track for the competition watchdog to accept it. “Given Musk's position in current U.S. politics, we don't think Intel's takeover will be a problem in the U.S.,” Semi-Accurate predicts. In any case, if communication is made on the subject, nothing should leak before the inauguration of Donald Trump, who should take office on January 20.
A major risk for Intel in the long term
A fine connoisseur of the world of semiconductors and particularly of Intel, Charlie Demerjian does not mince his words about the risk that this would pose to Intel. According to the journalist and analyst, the Twitter precedent and the drastic reduction in employees that Elon Musk carried out is incompatible with the production of cutting-edge semiconductors.
Between the cost reductions or even the very nature of Elon Musk, if the operation was finally validated, this acquisition would pose a great risk to Intel according to SemiAccurate. In any case, the study of the deal is currently protected by secret negotiations.
But if the deal becomes public and finalized, SemiAccurate could, once again, add a scoop to its list of trophies.
Advertising, your content continues below
Related News :