KEY TAKEAWAYS
- Broadcom and Taiwan Semiconductor Manufacturing Co. are considering potential bids for Intel that could lead to the company’s breakup.
- A report from The Wall Street Journalon Saturday indicated that Broadcom has been exploring Intel’s chip design and marketing divisions and has had “informal discussions” about a bid with its advisers, contingent on finding a partner for Intel’s manufacturing operations.
- Meanwhile, TSMC is reportedly assessing the possibility of taking over some or all of Intel’s chip fabrication facilities as part of an investment consortium or alternative arrangement.
Broadcom (AVGO) and Taiwan Semiconductor Manufacturing Co. (TSM) are reportedly considering bids for Intel (INTC) that could lead to the storied chipmaker’s breakup, according to a recent report.
The story published Saturday by The Wall Street Journalnoted that Broadcom has been examining Intel’s chip design and marketing segment and has “informally discussed” a bid with advisers, contingent on the identification of a partner for Intel’s production operations. Broadcom manufactures specialized AI chips for various prominent U.S. tech companies, including Alphabet and Meta.
On the other hand, TSMC has been reviewing the potential to acquire some or all of Intel’s manufacturing sites as part of an investor coalition or another framework. TSMC, being the largest chip fabricator globally and a significant competitor to Intel’s foundry services, has recently been the focus of numerous reports discussing prospective plans related to Intel. The Journal cited sources familiar with the discussions for its Saturday article, stating that Intel and Broadcom are not collaborating, and the talks are still in informal and early phases.
Intel, Broadcom, and TSMC have not responded to requests for comment as of yet.
In recent years, Intel has faced challenges as the company strives to catch up with the artificial intelligence boom and attempts to revitalize its business, culminating in the ousting of former CEO Pat Gelsinger last year after significant losses. Its foundry division has struggled to compete with TSMC, incurring a loss of $13.4 billion in 2024. The company’s shares have seen substantial declines this year, although its stock rallied last week after Vice President JD Vance announced that the Trump administration would implement measures to ensure AI chip design and production occur in the U.S.
Any disintegration of Intel would likely necessitate approval from the U.S. government.