Two major chipmakers, Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom, are considering separate deals to acquire rival Intel Corporation. This move could potentially split the US-based company in half, according to the Wall Street Journal.
TSMC has explored acquiring Intel’s chip plants as part of a consortium or through other means, while Broadcom is interested in Intel’s chip-design and marketing business. However, Broadcom will only consider making a bid if it finds a partner for Intel’s manufacturing business.
The talks are still in their early stages, with TSMC and Broadcom not working together on the deal. Intel has not been approached by either party.
This development comes as Intel faces increased competition from other chipmakers like Qualcomm, AMD, and Nvidia. The company’s foundry business has struggled to turn a profit, leading to speculation that it may be broken up.
The US government is also involved in discussions about Intel’s future, with President Donald Trump’s administration reportedly considering its involvement. However, it’s unlikely that the President would support a deal that gives a foreign entity control over US factories.
Intel has already begun separating its foundry business from the rest of the company and is seeking a new CEO after Pat Gelsinger was ousted in December. The company received significant financial support under the CHIPS Act and will be watching its stock performance closely, particularly if it makes ProPicks AI’s list of recommended stocks.
Source: https://www.investing.com/news/stock-market-news/broadcom-tsmc-weigh-separate-deals-for-struggling-chipmaker-intel-wsj-3871966