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Intel acquisition of Altera not expected to hurt TSMC: analysts

Intel acquisition of Altera not expected to hurt TSMC: analysts

Taipei, March 29 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC, ???), the world's largest contract chip maker, will likely not be affected by Intel Corp.'s rumored acquisition of chip making partner Altera Corp., industry analysts said Sunday.
Analysts familiar with Taiwan's semiconductor sector said that because Altera has already shifted most of its orders to Intel from TSMC, the deal would not affect the bellwether Taiwanese company significantly. TSMC already lost the business two years ago in 2013 when Altera, one of the world's leading designers of field programmable gate arrays (FPGA), agreed to have Intel fabricate its 14-nanometer wafers and FPGA chips, industry insiders said. Other leading Taiwanese companies in the field having partnerships with Altera, such as Advanced Semiconductor Engineering (???, ASE), are also not expected to be affected by the rumored acquisition, the insiders said. Also, Taiwanese integrated circuit design companies will not be affected because they have never established a presence in the global FPGA chip market, but news of the possible acquisition could have short-term effects on the share prices of some local semiconductor vendors. Intel's acquisition of Altera is expected to cost at least US$10 billion, the biggest in the company's history. Beset by tepid demand for its staple PC chips and its lackluster sales in the smartphone CPU market, Intel's acquisition of Altera is aimed at breathing new life into the world's largest semiconductor maker, analysts said. Though both companies declined to verify the rumored acquisition, the market reacted favorably to the development last Friday, sending Intel shares 6.4 percent higher to close at US$32, while Altera shares surged 28.39 percent to close at US$44.39. Should the deal be completed, Altera's major FPGA chip vendor rival Xilinx (???) will also likely be in play, with Qualcomm and IBM said to be possible suitors.
Because Xilinx is one of TSMC's major customers, analysts said the acquisition of Xilinx could have far greater consequences for the Taiwanese chip maker than would the Altera deal.
(By Jackson Chang and Ted Chen)


Updated : 2021-09-23 09:55 GMT+08:00