London Daily

Focus on the big picture.
Friday, Jul 25, 2025

Intel CEO calls chip maker ‘willing buyer’ as semiconductor industry consolidates

Intel CEO calls chip maker ‘willing buyer’ as semiconductor industry consolidates

Intel Corp. Chief Executive Pat Gelsinger is committed to buying other chip-makers as the industry consolidates, despite a leading acquisition candidate’s plan to go public.

"There will be consolidation in the industry," he said. "That trend will continue, and I expect that we’re going to be a consolidator." Gelsinger, about six months into the CEO job, said he plans to use mergers and acquisitions to support the company’s revival plan.

Intel had been in talks to buy GlobalFoundries, The Wall Street Journal previously reported. The talks cooled as GlobalFoundries focuses on an initial public offering, people familiar with the matter said.


GlobalFoundries now has confidentially filed for an IPO that could value the company at around $25 billion, a person familiar with the matter said. GlobalFoundries is owned by Mubadala Investment Co., an investment arm of the Abu Dhabi government. Reuters previously reported the IPO filing.

The talks with Intel have cooled as the focus around GlobalFoundries turned to an IPO, people familiar with the matter said.

Gelsinger, in the interview, declined to comment on GlobalFoundries directly, though he signaled Intel’s continued interest in deals. "M&A takes willing buyers and willing sellers," he said when asked about Intel’s pursuit of GlobalFoundries, adding "I’m a willing buyer."

Gelsinger, who was involved in about 100 acquisitions in his prior roles as president of EMC Corp. and later CEO of VMware Inc., said he’s looking to bring some of that experience to Intel.

The economics of modern chip production make deals likely, he said. The cost of cutting-edge chip manufacturing has risen rapidly in recent years, narrowing the number of companies in the field and likely pushing them to combine forces, he added.

Consolidation has been playing out for years. Among the most recent big deals, Marvell Technology Group Ltd. last year said it would buy Inphi Corp. and Analog Devices Inc. said it was buying rival Maxim Integrated Products Inc. for more than $20 billion.

Gelsinger said in the interview that the chip-manufacturing industry has been going through a prolonged reshaping. "Ten to 15 years ago, there were a good dozen companies that were making leading-edge technology, and today that’s down to three because it’s extremely capital-intensive and R&D-intensive, and those effects are continuing," he said. A modern, top-of-the-line chip factory, he said, costs more than $10 billion today.

Intel is one of the heavyweights in chip making, alongside Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics Co.

Gelsinger said deals aren’t at the top of an agenda that is focused on turning around the company he took over after a series of missteps. He has committed to spend big on his strategy to expand the company’s manufacturing footprint, add a contract chip-making arm, and catch up to rivals that gained a technological edge in recent years.

Intel is investing $23.5 billion in new factories in Arizona and New Mexico, and nearing completion of a $3 billion expansion in Oregon. Intel has said more investments in the U.S. and abroad are planned.

Newsletter

Related Articles

0:00
0:00
Close
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
×