According to the Wall Street Journal, citing people familiar with the matter, Intel is exploring a deal to acquire GF. This move will drive the semiconductor giant's plans to produce more chips for other technology companies, and was rated as the biggest acquisition in history. Semiconductor industry analyst Lu Xingzhi believes that Intel's move will do more harm than good.
According to the “Economic Daily” report, Lu Xingzhi's analysis indicates that Intel's acquisition of GF will not increase the supply of foundry wafers. Although through the acquisition of GF, Intel will be able to obtain 7% of the foundry market share and expertise in foundry services, which will help Intel reinforce its intellectual property rights and process technology. However, GF's main factory is in the US, and the cost is relatively high, and the customer structure is weak, so Lu Bank expects that the acquisition of GF will reduce Intel's gross profit margin.
In addition, GF has some customers that compete with Intel in the fields of central processing units, image processors, Netcom, artificial intelligence, and the Internet of Things. Lu Xingzhi said that these customers will inevitably transfer orders when they see Intel as the main driver.
Lu Xingzhi also believes that Intel's move will not only scatter resources, but may also drag down the competitiveness of the product design department. He said that foundry is not as easy as Intel thought it would be. $INTEL-T (04335.HK)$