According to The Wall Street Journal, Broadcom and Taiwan Semiconductor Manufacturing Company (TSMC) are reportedly exploring separate deals to take over parts of Intel. These deals could reshape the semiconductor industry and significantly impact Intel’s future.
Broadcom eyes Intel’s chip-design business
Broadcom is reportedly considering acquiring Intel’s chip design and marketing division. However, it is not looking to take on Intel’s manufacturing operations alone. Instead, the company seeks a partner to handle Intel’s factory side of the business. This move could allow Broadcom to focus solely on chip innovation and development, leaving the complex and costly manufacturing process to another party.
At the same time, TSMC is also said to be weighing a deal to control some or all of Intel’s chip plants. The Journal suggests that TSMC may be considering this as part of an investor consortium, potentially ensuring broader financial backing and strategic support.
US government concerns over foreign control
The report indicates that former President Donald Trump’s administration may have encouraged TSMC’s interest in Intel’s manufacturing business. However, a White House official noted that the administration would likely not support a deal that allows a foreign company to take control of Intel’s factories. This raises concerns about national security and the future of domestic chip production in the United States.
These discussions remain early; no formal proposals have been submitted to Intel. The Journal states that all talks are preliminary, meaning there is no certainty that any deal will progress.
Intel’s ongoing struggles
Intel’s financial struggles have made it an attractive target for semiconductor industry competitors. In September, The Wall Street Journal reported that Qualcomm had approached Intel about a possible takeover. Now, with Broadcom and TSMC considering their moves, multiple companies seem to be looking to capitalise on Intel’s difficulties.
If Broadcom or TSMC successfully acquires parts of Intel, the semiconductor landscape could be significantly shifted. Once the dominant force in the chip industry, Intel faces pressure from several rivals eager to take advantage of its weakened position. For now, however, it remains uncertain whether any deal will materialise.
