The US Commerce Department is seriously considering a merger between Intel and AMD, an option that would have seemed unthinkable just a few years ago.
The figures are dizzying: $16.3 billion in losses for Intel in the last quarter. A situation that pushes the American Department of Commerce to consider radical solutions.
This historic loss is not just an accident, Intel is doing badly.
The company, once the undisputed leader in the sector, faces fierce competition, notably from TSMC and Samsung in chip manufacturing, but also from AMD, Qualcomm and Apple in processor design. This situation pushed Washington to become directly involved in the matter. The information comes to us from Traffic lightsand it’s serious.
Options on the table
The CHIPS Act, this American law aimed at strengthening the semiconductor industry on American soil, could bring a breath of fresh air to Intel. Basically, several billion dollars were injected by the United States to be the most independent in semiconductors. However, according to experts, this aid would not be enough to sustainably turn around the company.
The merger with AMD appears to be one of the most serious options. This solution, which would have seemed unthinkable a few years ago, would make it possible to create a giant capable of competing with Asian leaders. But other players are also cited, notably Apple and Marvell, who have the necessary financial resources.
This situation goes far beyond the economic framework. Semiconductor production has become a national security issue for the United States. The recent major order from the US Department of Defense to Intel illustrates this strategic dimension.
Intel’s 18A manufacturing process, on which the company is banking heavily, could represent a glimmer of hope. However, time is running out and the American authorities seem to favor more radical solutions to preserve production capacities on American soil.
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