[HN Gopher] Qualcomm Wants to Buy Intel
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       Qualcomm Wants to Buy Intel
        
       Author : oco101
       Score  : 121 points
       Date   : 2024-09-20 20:57 UTC (2 hours ago)
        
 (HTM) web link (www.theverge.com)
 (TXT) w3m dump (www.theverge.com)
        
       | melling wrote:
       | Yeah, Intel is really cheap. It would be a steal.
        
       | osnium123 wrote:
       | China will block this deal from ever happening.
        
         | electronbeam wrote:
         | What would motivate this
        
           | Arn_Thor wrote:
           | What's bad for US semiconductor manufacturing (I.e. a poor
           | and cash starved Intel) buys China more time to catch up to
           | frontier fab tech. If Qualcomm buys Intel, the optimistic
           | scenario (for the US) is a stronger domestic player.
        
             | osnium123 wrote:
             | Yes. This would also give more volume for the existing
             | Intel factories.
        
             | qwytw wrote:
             | > stronger domestic player
             | 
             | Is it though? Qualcomm is more likely to just strip Intel
             | for parts than to turn it around and we'll just end up with
             | more market concentration and less competition.
        
             | electronbeam wrote:
             | If that were true they'd denial-of-service every possible
             | merger
        
               | kube-system wrote:
               | Geopolitically you can't ixnay everything, you've got to
               | pick your battles.
        
           | pwython wrote:
           | "So, why is Qualcomm under so much pressure? China is one
           | significant reason. China is one of their critical worldwide
           | markets and both the US and China governments seem to be
           | increasing pressure on various US companies, including Apple,
           | Qualcomm and Google."
           | 
           | https://www.rcrwireless.com/20230911/uncategorized/kagan-
           | how...
        
           | quantum_state wrote:
           | From some perspective, governments of the big markets are
           | like gangsters...
        
         | ectospheno wrote:
         | How exactly would a foreign power block two US companies from
         | merging when it has no significant stock holding in either?
        
           | osnium123 wrote:
           | Chinese regulators have a say because both companies do
           | business in China.
        
           | onepointsixC wrote:
           | Same way China blocked Intel from acquiring Tower
           | Semiconductor.
        
             | wahern wrote:
             | TIL: https://www.reuters.com/technology/intel-walk-
             | away-54-bln-ac...
        
           | mlyle wrote:
           | Same way Europe exercises outsized antitrust influence in the
           | US: threatening to fine US entities, and if necessary deny
           | them access to the European market.
           | 
           | It would be tricky, though, because my sense is that China
           | still needs Intel/Qualcomm more than they _need_ China. At
           | the same time, it would be pretty deadly to be denied access
           | to that market and your products subject to excess tariffs if
           | imported by others.
        
             | shortsunblack wrote:
             | To the poster, Europe does not exercise outsized antitrust
             | influence in the US. Many of these companies have their tax
             | residency in the EU. There is no need to "deny" anything.
             | If the company gets fined and it refuses to pay the fine,
             | EU seizes the money in one of many bank accounts in Europe.
        
               | mlyle wrote:
               | Europe absolutely exercises significant antitrust
               | influence upon US firms.
               | 
               | In practice, yes, as you point out: US firms must have
               | assets in Europe to compete effectively.
               | 
               | But even if they didn't, Europe could deny access to the
               | European market. So there is no reason to try and
               | minimize surface in Europe. e.g. Apple has to comply with
               | European antitrust rulings about app store access, even
               | if Apple were to just sell their product to third party
               | distributors in Europe and not have any presence in
               | Europe.
        
               | overstay8930 wrote:
               | > Europe could deny access to the European market
               | 
               | Not really, Apple would just get customers the same way
               | they're sold in any other part of the world that doesn't
               | officially have iPhones (i.e. Russia), the EU doesn't
               | have the authority to seize shipments purely based on a
               | violation of the DMA.
        
           | ivewonyoung wrote:
           | Like how UK blocked Microsoft's purchase of Blizzard.
        
           | sidkshatriya wrote:
           | Major markets like EU and China often do have a major
           | influence on mergers even though the companies merging could
           | be based in the US and most shareholding could be US.
           | 
           | I think it goes like this: The major market regulator could
           | say directly/indirectly: Hey you can merge in the US ... but
           | good luck operating in our geography in a frictionless manner
           | if we are against your merger. As a regulator we can make
           | life hell for you if you don't obey our anticompetitive laws.
           | Since you derive a high percentage of your revenue/profits
           | you must listen to us !
           | 
           | It all depends on the percentage of sales in the foreign
           | geography. With EU/China it can be quite high -- especially
           | for tech companies.
           | 
           | So yes, foreign powers can and often do block companies from
           | merging.
        
             | ASalazarMX wrote:
             | And I think it ends like this:
             | 
             | CEO to board: We want to acquire $LESSER_COMPANY, but China
             | opposes. We can go through, but we'll lose easy access to
             | that market, and our valuation will drop.
             | 
             | Board: Forget it.
        
       | jovial_cavalier wrote:
       | >Is this how arm vs x86 ends?
       | 
       | No... Intel isn't the only one that makes x86 processors and
       | Qualcomm isn't the only one that makes arm.
       | 
       | Separately, Intel should sell them the flagging chips business
       | and keep the fledgling foundries business separate.
        
         | qwytw wrote:
         | > flagging chips business
         | 
         | Is it "flagging", though? Intel still seems to be pretty good
         | at designing chips and their next gen laptop chips (made at
         | TSMC) are allegedly more power efficient than the Snapdragon
         | Elite (of course remains to be seen). It's the foundry that's
         | dragging down.
        
         | zeusk wrote:
         | If you look at the financial statements, it's quite the
         | opposite however?
         | 
         | Their chips made on TSMC process are doing quite well and IFS
         | has failed to secure worthwhile external customers and is
         | losing money in their expansion hand over first.
        
           | onepointsixC wrote:
           | IFS has just announced Amazon as a customer with a design on
           | 18A. Microsoft is also expected to tape out one design.
           | They're not going to challenge TSMC this decade, but becoming
           | the #2 fab 2030 is achievable.
        
       | 015a wrote:
       | Wasn't there some clause in the Intel/AMD x86-64 cross-licensing
       | deal which voids it if either company changes ownership? I have
       | some recollection of that being a thing.
       | 
       | But to be fair, Qualcomm might not care.
        
         | electronbeam wrote:
         | Deals can be amended for $$
         | 
         | The idea is to keep the number of x86 suppliers low, but enough
         | patents are expired already you could probably make an x86_64
         | avx2 era cpu without asking
        
       | geerlingguy wrote:
       | Qualcomm still hasn't shipped any of the Snapdragon X dev kits,
       | two months and counting. If they can't deliver on their promises
       | (that and CoPilot PCs having very disappointing sales), how could
       | they do anything besides further drag down Intel?
       | 
       | Not only that, it sounds like a major customer (Apple) is close
       | to finally ditching Qualcomm's wireless chips? (At least that's
       | been rumored [1])
       | 
       | [1] https://appleinsider.com/articles/24/07/24/apple-has-
       | reporte...
        
         | cowmix wrote:
         | When this platform was heralded as the "AI" desktop, I pre-
         | ordered both the dev kit and a laptop. Like many of you, I've
         | experienced a months-long delay in the delivery of the dev
         | kits. Although I STILL don't have my devkit, I received my
         | laptop pretty much on time. -- and I quickly discovered that
         | despite Windows on ARM (WOA) being over a decade old, the
         | support for open-source tooling is as complete as Swiss cheese.
         | Key Python modules are missing, and even the Git command-line
         | (git bash) client isn't functional yet!
         | 
         | I mean, forget about basic open-source development, let alone
         | performing AI inference work on your new Snapdragon laptop.
         | 
         | After some digging, I've learned that just four overworked
         | developers in Prague make up the core team unclogging this
         | tooling dependency log-jam. Gah!
         | 
         | For what it's worth, WSL2 (Linux on Windows) actually runs
         | quite impressively on the Snapdragon X.
        
           | nine_k wrote:
           | Why run Windows on ARM, when Linux on ARM is so.much more
           | mature? Or are you buildings a Windows-specific product?
        
         | wmf wrote:
         | Companies should do what they say they're going to do, but
         | these dev kits are an example of something that's relevant to
         | HN but not to Qualcomm's business.
        
           | freehorse wrote:
           | How can you expect your products to have good software
           | support by developers then?
        
             | wmf wrote:
             | Snapdragon laptops have been available for a few weeks
             | already. Although laptops cost more than this dev kit
             | they're also more usable as a daily driver. If Qualcomm
             | wants real adoption they'd send them out for free, not
             | require devs to pay.
        
           | cowmix wrote:
           | A large part of the success of this new platform is how fast
           | devs can adapt / fix their apps to work natively. Apple, for
           | instance, provided dev mules for OSX ARM --- and their
           | rollout of Apple Silicon was smoother than anyone could have
           | hoped.
           | 
           | Windows ARM -- still borked in SOOO many ways -- and its 10+
           | years old now.
        
             | com2kid wrote:
             | > Windows ARM -- still borked in SOOO many ways -- and its
             | 10+ years old now.
             | 
             | Internally, nearly 20 years. It was kept alive for a long
             | time by a single individual as a side project. When I first
             | got out of college I actually helped update tests that were
             | being used for it (I maintained the ARM compiler test
             | harness, and it was being used for some Windows on ARM
             | stuff as well).
             | 
             | Microsoft has never went fully in on arm, whereas Apple was
             | willing to burn bridges and start brand new.
        
         | kev009 wrote:
         | Qualcomm's RF design is best in class. This is their bread and
         | butter and they have been consistently good at it forever.
         | 
         | Apple purchased intel's RF baseband division,which was awful,
         | and has been working on it in secret for years. It remains to
         | be seen how this will go for Apple. It is attractive to Apple
         | for cost and efficiency reasons (theoretically they can bury
         | this all on a single SoC if they wish to) not because Qualcomm
         | is bad.
         | 
         | It bears in mind that just because you are good at one thing
         | does not imply you will be good at another. For instance,
         | Intel's networking is mediocre to bad depending on the product
         | or various entities trying to produce MIPS and ARM products
         | failing time and time again.
        
       | Narhem wrote:
       | Is there a patent or something Qualcomm is trying to get from
       | Intel? Seems like an odd acquisition otherwise.
       | 
       | As far as chip manufacturing they target different markets, I'd
       | bet most IP isn't transferable between the orgs anyway,
       | especially since Apple bought Intels modem patents already.
        
         | klyrs wrote:
         | A... single patent? No, there are licensing agreements for
         | that.
        
       | WheelsAtLarge wrote:
       | Intel has focused on manufacturing efficiency for years now.
       | Their innovation abilities have been lacking. A combination of
       | Qualcomm and Intel will be a powerhouse. Intel as an entity will
       | disappear but Qualcomm will be the stronger for it. I doubt Intel
       | will go for it but I hope it happens.
        
         | qwytw wrote:
         | > Their innovation abilities have been lacking
         | 
         | And Qualcomm's haven't? What did they really design besides the
         | Snapdragon X Elite in the last 10+ years?
         | 
         | > but I hope it happens
         | 
         | So more industry concentration and even less competition would
         | somehow be a good thing?
        
           | mewse-hn wrote:
           | > What did they really design besides the Snapdragon X Elite
           | in the last 10+ years?
           | 
           | The Snapdragon 8 series have been the flagship SoCs for non-
           | Apple phones for years, that's why people had high hopes for
           | the Snapdragon X on PCs
        
             | qwytw wrote:
             | > The Snapdragon 8 series
             | 
             | They "just" are just using standard ARM cores which is
             | hardly comparable to what Intel and Apple are doing (and
             | they have been lagging behind Apple by a few years since
             | forever; arguably Intel is closer to the M series than
             | Qualcomm is to A series).
             | 
             | > Snapdragon X
             | 
             | I thought it's because they finally designed their own
             | core, since ARM has been completely ignoring the laptop
             | market and couldn't really offer anything?
        
             | silisili wrote:
             | Snapdragons have mostly been reference ARM designs with
             | Adreno bolted on being the big selling point, since it
             | blows away Mali or whatever the reference design is today.
             | They got that from AMD of all places, hence the name being
             | an anagram of Radeon.
        
           | packetlost wrote:
           | > What did they really design besides the Snapdragon X Elite
           | in the last 10+ years?
           | 
           | Lots of 5G modems
        
             | Wytwwww wrote:
             | It's pretty easy to design the best 5G modems when you're
             | are almost (effectively) the only company that's legally
             | allowed to make them. They are basically a monopoly...
             | 
             | Intel would be doing much better as well if they didn't
             | have to share x86 with AMD and could sue ARM into
             | oblivion...
        
               | jprd wrote:
               | I imagine Apple would disagree.
        
       | ChrisArchitect wrote:
       | [dupe]
       | 
       | Some more discussion:
       | https://news.ycombinator.com/item?id=41604817
        
       | MattGrommes wrote:
       | Qualcomm consists of at least 4 lawyers for every engineer. If
       | this happens expect a lot more lawsuits making anything involving
       | hardware much more expensive for everybody.
        
         | Narhem wrote:
         | Qualcomm makes lots of their money by holding a monopoly on
         | wireless chip patents. They use lawyers to bully other
         | companies out of the space.
         | 
         | You can compare this with the patent wars of the companies in
         | Silicon Valley which came to halt when the orgs realized they
         | were effectively giving money to lawyers instead of innovating.
         | 
         | Qualcomm doesn't really have real competition in Southern
         | California. It's cheaper for them to bully smaller companies
         | with lawyers than employ more engineers (not sure if it's
         | possible to employ more engineers in the wireless space
         | regardless).
         | 
         | You could also argue Qualcomms success is related to the other
         | companies which reside around them. They have effectively built
         | an "office moat" with their wireless patents.
        
           | slt2021 wrote:
           | so Qualcomm is basically Oracle?
        
         | refulgentis wrote:
         | No way, 4x?!
        
       | LarsDu88 wrote:
       | This would not be good for either party. And Qualcomm would only
       | do this to kill x86 prematurely which I'm sure AMD will pick up
       | on.
        
       | gunalx wrote:
       | I really don't see it. Maybe a merger of some sort but still. Has
       | Qualcomm anything to gain from taking intel, and likewise intel
       | from being merged in?
        
         | lagadu wrote:
         | They might just split and sell off the cpu and gpu divisions
         | and keep the rest of Intel's (very wide) portfolio. Of
         | particular interest might be the Intel foundries.
        
       | kev009 wrote:
       | The headline seems intentionally bombastic and false. The text
       | specifies that they are interested in lines of business, for
       | example consumer computing, not the entire entity.
        
       | fidotron wrote:
       | I wonder if Intel still have a suitable Arm architecture license
       | that would be transferable? It seems unlikely without Arm
       | approval, but a bundle could offset some of the cost Qualcomm
       | might be thinking about, as that lawsuit might be getting too
       | expensive, even for them.
       | 
       | For context: https://www.reuters.com/technology/arm-qualcomm-
       | legal-battle...
        
       | GeekyBear wrote:
       | After a decade of being assured that the short support window for
       | Android devices had a root cause in the lack of support device
       | makers received from Qualcomm, they are the last company that I
       | want to see buy Intel.
        
         | bfrog wrote:
         | Meanwhile x86 has maintained backwards compat for (checks
         | calendar) yeah decades. Literally decades. With standards up
         | the wazoo to avoid the disaster that is the Arm ecosystem
         | without UEFI or something like it.
         | 
         | Every Arm SoC being a snowflake needing special attention by
         | the OS is a huge hassle. There's a reason there's no simplified
         | Arm installer for operating systems.
        
           | dan-robertson wrote:
           | Historically this backwards compatibility was a competitive
           | moat for intel - having a large supply of weird instructions
           | with some undocumented behaviour thrown in makes it more
           | expensive to make competing chips.
        
             | loeg wrote:
             | The ISA isn't what makes x86 easier for operating systems
             | to support than ARM SoCs. It's things like generic ACPICA
             | instead of hardcoded devicetrees.
        
         | ASalazarMX wrote:
         | Intel squandered its dominance on the CPU market for decades.
         | Qalcomm sucking the remaining life of it would be a fitting end
         | for a player that lost its way.
         | 
         | Wonder if the increasing backwards compatibility became too
         | much to bear, but IMO it never really tried to tread new
         | grounds for risk of losing a comfortable position.
        
       | onepointsixC wrote:
       | A sale isn't going to happen. Intel has had a rough quarter but
       | their lunar lake launch looks promising, beating Qualcomm's
       | offerings on battery life and performance.
        
       | ginko wrote:
       | Qualcomm should be broken up.
        
       | xmly wrote:
       | good joke
        
       | tippytippytango wrote:
       | Apple, c'mon. Get in there and just buy intel. Get the foundry
       | working, spin out x86 into its own legacy, fabless business unit.
       | Make your own chips, it's only 100B!!
        
       | dzonga wrote:
       | selling intel to Qualcomm, would the equivalent of selling
       | yourself to a vampire instead of selling blood.
       | 
       | the reason Apple ended up making their own wireless chips is due
       | to Qualcomm
        
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