Intel Corporation, the longtime semiconductor giant, is reportedly being eyed for a potential breakup and acquisition by Broadcom and Taiwan Semiconductor Manufacturing Company (TSMC), according to recent reports from The Wall Street Journal.
The preliminary discussions suggest TSMC could acquire Intel's manufacturing facilities, while Broadcom would take over the chip design and marketing operations. The two companies are reportedly exploring these acquisitions independently rather than coordinating their efforts.
Intel's interim executive chairman Frank Yeary has been actively seeking potential buyers to maximize shareholder value, rather than focusing on appointing new executive leadership. This comes after former CEO Pat Gelsinger's departure in December 2023.
The semiconductor manufacturer has faced mounting challenges in recent years. Intel has lost market share to competitor AMD in the CPU sector and failed to capitalize on the booming AI GPU market now dominated by NVIDIA. The company also struggled to maintain competitive manufacturing capabilities against rivals like TSMC and Samsung.
Any potential deal would require careful scrutiny from U.S. authorities, given Intel's strategic importance to national security. The transfer of ownership to foreign entities, particularly TSMC, could face resistance from the current administration.
Market observers note that these discussions are still in early stages. Some speculate that investment banks may be attempting to orchestrate deals that would generate substantial fees.
The news reflects broader changes in the semiconductor industry as companies adapt to evolving market demands and competitive pressures. Intel's position as both a chip designer and manufacturer may shift toward a more specialized approach through strategic partnerships.