Intel is reportedly facing a potential breakup as rivals Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom explore separate deals to acquire parts of the struggling American chipmaker. While these potential deals remain preliminary and informal, they pose a significant threat to Intel’s long-held integrated model—hinting at a broader industry shift toward specializing exclusively in chip design or manufacturing.
“How Intel’s rumoured deal with Broadcom, TSMC may work”
Citing sources familiar with the matter, the Wall Street Journal reports that Broadcom is considering a bid for Intel’s chip design and marketing division. The company has held informal discussions with advisors but would likely pursue a deal only if it secures a partner for Intel’s manufacturing operations. However, no formal offer has been submitted, and Broadcom may ultimately decide against a bid.
Meanwhile, TSMC, the world’s largest contract chip manufacturer, is exploring the possibility of acquiring some or all of Intel’s fabrication plants (fabs). Sources indicate that TSMC might participate in an investor consortium or employ another structure to facilitate the acquisition.
Amid these developments, Intel’s interim executive chairman, Frank Yeary, is reportedly leading discussions with potential suitors and Trump administration officials concerned about national security implications. Yeary has emphasized that his top priority is maximizing shareholder value. Talks regarding Intel’s fabs are still in the early stages, with the Trump administration having approached TSMC to explore the possibility. However, a White House official reportedly stated that “the president is unlikely to support a deal that results in a foreign entity operating Intel’s factories.”
Additionally, Intel’s board of directors is actively searching for a new CEO. The mandate of the eventual executive leader will likely hinge on the outcome of these ongoing discussions and the resulting company structure.
In recent years, as part of a cost-cutting initiative, Intel has been divesting various business segments, including the ongoing sale of a stake in its programmable-chip unit, Altera, which it acquired in 2015 for $16.7 billion.
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