Broadcom and TSMC are planning to split the American tech giant, Intel into two separate entities. The Wall Street Journal reported on Saturday that the rival Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom are interested in separate divisions of Intel. The talks are still in the early stages, with Broadcom looking at Intel’s chip design and marketing business, while TSMC is thinking about buying Intel’s manufacturing plants.
(Image Credit: intel.com)Broadcom has been in talks with advisors about a potential bid but would likely proceed only if it finds a suitable partner for Intel’s fabrication business. Meanwhile, TSMC, the world’s largest contract chipmaker, is exploring options to take control of some or all of Intel’s chip plants, possibly through an investor group. According to a report, Broadcom and TSMC are not working together, and the discussions are still informal.
Intel’s Potential Breakup Under Discussion
Intel’s interim executive chairman, Frank Yeary, has been leading talks with potential buyers and engaging with officials from the American government, which has expressed concerns about Intel’s future as a key player in national security. Yeary’s main goal is to maximize shareholder value.
The White House has shown resistance to the idea of a foreign company operating Intel’s US chip factories. A White House official stated that, while the Trump administration supports foreign investment in the US, it’s “unlikely” to back a deal of Intel’s potential breakup, where TSMC controls Intel’s manufacturing facilities. Earlier reports suggest that Trump administration officials had discussed the deal with TSMC, which seemed open to the idea.
Intel’s Downfall – Why Tech Giant is Open for Bids?
Intel was one of the biggest beneficiaries of the US government’s push to bring semiconductor manufacturing back home. In November, the Commerce Department approved a USD 7.86 billion subsidy for Intel to boost domestic chip production.
However, Intel has faced growing challenges over the past year, losing around 60% of its market value in 2023. The decline followed an ambitious but costly push into manufacturing and AI under former CEO Pat Gelsinger, who was ousted last year. This strategy caused financial strain, contract losses, and a 15% reduction in Intel’s workforce.
Intel Stock Update
Intel’s stock price has shown some volatility recently. As of February 14, 2025, Intel’s stock price closed at $23.60, down 2.20% from the previous day. Over the past week, the stock has fluctuated, with a recent high of $25.19 and a low of $22.86. Looking at the past month, Intel has shown a more positive trend, with a 21.65% increase.
