Intel’s stock price rose sharply on Tuesday morning following reports that rival companies are exploring options to acquire parts of its business. The plans, reportedly backed by President Donald Trump’s administration, could see Taiwan Semiconductor Manufacturing Company (TSMC) take a majority stake in Intel’s manufacturing business or acquire its chip design units.
Intel’s interim executive chair, Frank Yeary, has met with TSMC and Trump administration officials about the deal, which is seen as a potential solution to the company’s struggles in competing with rivals like Nvidia. However, the White House is unlikely to support a foreign entity operating Intel’s factories, according to reports from The Wall Street Journal.
Broadcom and Qualcomm have also been examined by Intel for potential partnerships or acquisitions, although nothing has been officially submitted yet. These developments come after Intel’s former CEO was ousted in August due to his inability to modernize the company, which has struggled with declining revenue and a significant workforce reduction plan.
Intel expects to report break-even profit for the first quarter of 2025 and has received a $7.86 billion grant from the US government to build semiconductors domestically. Despite these efforts, the company remains vulnerable to rival acquisitions, and investors are closely watching the situation.
Source: https://qz.com/intel-stock-trump-tsmc-broadcom-deal-chips-nvidia-ai-1851765054