Broadcom CEO Hock Tan recently stated in an interview with the Financial Times that the company will fully focus on advancing its artificial intelligence (AI) business and has no plans to acquire Intel.
Hock Tan pointed out that Broadcom's operations in AI semiconductors require significant resources and attention, and currently, no acquisition proposals for Intel have been received. He further mentioned that Broadcom would only consider an acquisition if the circumstances were right.
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Under Hock Tan's leadership, Broadcom is known for its bold acquisition strategy. In 2015, Broadcom acquired Avago Technologies for $37 billion, forming today's Broadcom. By the end of 2023, Broadcom completed a $69 billion acquisition of VMware, showcasing its active presence in the M&A market.
However, not all acquisition attempts have been successful. In 2017, Broadcom attempted a hostile takeover of Qualcomm, but after its initial offer was rejected, it faced opposition from the Trump administration. Hock Tan stated that hostile takeovers are not part of his future strategy. Nonetheless, he remains open to potential deals in both hardware and software sectors.
In the interview, Hock Tan also discussed the growing demand for AI technology, noting that many large tech companies are heavily investing in AI infrastructure, and numerous clients are developing investment strategies for the next three to five years. He mentioned that these companies are rapidly advancing their plans until their financial resources are depleted or face shareholder opposition.
Additionally, Intel is not the only company rumored to be a potential acquisition target; AMD is also considered to have such potential. In an interview with Time magazine, AMD CEO Lisa Su mentioned Intel's CEO Pat Gelsinger's recent resignation while discussing competitors. Although she did not disclose specific successors when asked, she expressed respect for Gelsinger and acknowledged the challenges of the position. When further asked if the Biden administration encouraged AMD to merge with Intel, Su firmly denied it.
Key Points:
🌟 Broadcom CEO Hock Tan states the company is focused on AI business and has no intention of acquiring Intel.
💼 Under Tan's leadership, Broadcom is known for its bold acquisition strategy, successfully acquiring VMware.
📈 The demand for AI technology is surging, with tech companies actively investing and looking forward to three to five years of development strategies.