Intel, a US-based chipmaker, is being eyed for potential deals that could split the company in two. According to reports, Taiwan Semiconductor Manufacturing Co (TSMC) and Broadcom are both exploring opportunities to acquire parts of Intel’s business.
TSMC, the world’s largest contract chipmaker, has been studying the possibility of controlling some or all of Intel’s chip plants. The Taiwanese company has considered forming an investor consortium or other structure to acquire the assets.
Broadcom, on the other hand, is focusing on acquiring Intel’s chip design and marketing business. However, it will likely only proceed with a bid if it finds a partner for Intel’s manufacturing business.
The Trump administration has expressed concerns about a foreign entity operating Intel’s US-based factories. A White House official stated that the administration supports foreign companies investing in the US but is unlikely to support a foreign firm operating Intel’s factories.
Intel has been benefiting from the US government’s push to onshore critical chip manufacturing. The company received a $7.86 billion subsidy from the US Commerce Department last year. However, it has struggled with high expectations and capital-intensive manufacturing strategies, leading to significant losses in shares value.
The situation highlights the challenges facing Intel as it navigates its manufacturing and AI capabilities. Former CEO Pat Gelsinger set ambitious goals for the company but ultimately failed to meet them, leading to significant workforce cuts and share price losses.
Source: https://www.reuters.com/markets/deals/broadcom-tsmc-eye-possible-intel-deals-that-would-split-storied-chipmaker-wsj-2025-02-16