Intel Corporation, a leading US semiconductor company, is facing potential restructuring under pressure from the US government. Both Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom are reportedly exploring deals to split the company, with Broadcom showing interest in acquiring Intel’s chip design and marketing operations.
Intel’s interim executive chairman, Frank Yeary, is focusing on optimizing value for shareholders amidst negotiations with potential buyers. However, President Donald Trump’s administration has expressed concerns about foreign companies controlling US semiconductor manufacturing operations, particularly given Intel’s crucial role in national security.
The US government prefers foreign investment in chip production within the country but does not favor foreign control over domestic manufacturing plants. The Biden administration’s efforts to bring semiconductor manufacturing back to the US have secured a $7.86 billion government subsidy for Intel, which may be affected by any restructuring plans.
TSMC is also examining the possibility of taking control of some or all of Intel’s manufacturing facilities, either through an investor consortium or strategic arrangements. Meanwhile, AMD and Nvidia are competing with Intel in the semiconductor industry, raising questions about Intel’s ability to maintain its competitive edge.
Separately, a court order has temporarily halted further staff dismissals at the US Consumer Financial Protection Bureau (CFPB), averting mass layoffs. The decision comes after significant unrest, during which CFPB staff members were dismissed by the Trump administration.
Source: https://www.pymnts.com/cpi-posts/intel-faces-potential-breakup-as-broadcom-and-tsmc-explore-deals