Intel Declines Arm's Offer for Chip Division Sale

Arm Holdings has made an approach to acquire a portion of Intel's chip division, but Intel has firmly rejected the proposal, stating that the division is not for sale. This comes at a time when Intel is facing significant challenges, including a 31% drop in its stock price and plans to cut 15,000 jobs as part of a restructuring effort. The company has been struggling to keep pace with competitors like Taiwan Semiconductor Manufacturing Company (TSMC) and Nvidia, particularly in the rapidly evolving AI sector. Meanwhile, Arm, which has seen its stock value more than double in 2024, is looking to expand its market presence beyond smartphone chip designs into computer processing units. The interest from Arm follows a similar proposal from Qualcomm, indicating a potential bidding war for Intel's assets. Despite its historical dominance in the chipmaking industry, Intel's recent financial struggles and strategic shifts have raised concerns about its future direction and competitiveness in the semiconductor market.