US Considers Merger Between Intel and AMD to Counter Intel’s Decline

The bad times that Intel is going through have given rise to news and information that would have been unthinkable in other times. We have already talked about the interest that companies such as Qualcomm or even Samsung and Apple have in taking advantage of the moment of weakness of the once most valuable company in the world to acquire it and include it in their operations.

Government Intervention to Safeguard Intel’s Future

Now, new information suggests that the United States government is looking for ways to save the company, a key player in the country’s technological power, considering options ranging from capital injections to a merger with AMD or Marvell.

US concerns about Intel’s future are so high that the option of a merger with its main rival, AMD, is on the table if the company is unable to stand on its own and is unable to continue its operations. Intel has lost more than half its value so far this year.

Although it would be a “plan B” in the event that this situation were to occur, the truth is that even considering such a large-scale idea is really shocking and shows how things are at the company. In fact, it seems that the option of the government taking direct stakes in Intel as they did in the 2008 crisis with banks and car manufacturers is not on the table due to concerns that Intel will continue to lose money by continuing to decline in sales.

Currently, Intel is already the main beneficiary of the US CHIPS program that seeks to boost local semiconductor manufacturing, but the lack of confidence in the company’s business plans has meant that it has not yet received any of the $8.5 billion in subsidies it is seeking.