The Zhitong Finance App learned that after Qualcomm (QCOM.US) and Broadcom (AVGO.US), there is news that Arm (ARM.US) is also interested in acquiring Intel (INTC.US) assets; however, this proposal was rejected by the latter.

According to a source familiar with the matter, Arm had been in touch with Intel to buy the struggling chipmaker's product division, but was told the business was unsaleable.

People familiar with the matter said that in a high-level investigation, Arm did not show interest in Intel's manufacturing business. According to information, Intel currently has two main divisions: one is a product group that sells chips for PCs, servers, and network devices, and the other is a division that operates factories.

Representatives from Arm and Intel declined to comment.

Intel was once the world's largest chipmaker, and since its business deteriorated rapidly this year, the company has been the target of acquisition speculations. The company released a disastrous earnings report last month, plunging its stock price into its worst plunge in decades, and is laying off 0.015 million workers to save money. The company has also cut back on plans to expand its factory and discontinued dividends that it has long cherished.

As part of its efforts to reverse the decline, Intel is separating its chip products division from its manufacturing business. The move was aimed at attracting external customers and investors, but it also laid the foundation for the company's spin-off — reports last month said Intel had already considered this.

The SoftBank Group holds a majority stake in Arm, and most of its revenue comes from smartphone chip design. But CEO Rene Haas has been trying to expand its influence outside the industry. This includes entering the PC and server sector, where its chip design is competing with Intel. Although Intel no longer has the technological advantages it once had, the company still dominates these markets.

The merger with Intel will help expand Arm's business scope and launch initiatives to sell more of its own products. The company currently licenses technology and design to customers, who then turn them into complete components. The company's customers include well-known companies in the technology sector such as Amazon (AMZN.US), Qualcomm, and Samsung Electronics (SSNLF.US).

Under Haas's leadership, the company has moved towards providing fully molded products, which could put it in competition with licensors.

As it stands, Arm's revenue is only a fraction of Intel's, but since its IPO last year, its valuation has soared and is now over $156 billion. Investors see the company as a beneficiary of the boom in AI spending, especially as the company moves further into data center chips. Arm is also backed by SoftBank, which holds 88% of the company's shares, which could give the company additional financial influence.

In contrast, Intel's market capitalization has shrunk by more than half this year, and its current market capitalization is 102.3 billion US dollars. But the company has other options to consider. According to reports, Apollo Global (APO.US) proposed to invest in the company. The company said in recent days that it is willing to invest up to 5 billion dollars, which marks a vote of confidence in CEO Pat Gelsinger.

Intel also plans to sell some of its shares in semiconductor manufacturer Altera Corp. to private equity investors. The chipmaker bought the business in 2015 and split it out of Intel's business last year with the goal of taking it public. Over the past week, speculations about Qualcomm and Broadcom buying Intel boosted Intel's stock price.