Intel is facing potential acquisition bids from TSMC (Taiwan Semiconductor Manufacturing Company) and Broadcom, according to sources cited by The Wall Street Journal. The two major tech companies are exploring deals that could effectively split Intel's operations, with Broadcom reportedly eyeing Intel’s chip design and marketing divisions, while TSMC is assessing the possibility of taking over its chip manufacturing plants.
Broadcom has engaged in informal discussions with advisors about a potential bid, though it is likely to proceed only if it secures a partner to handle Intel’s manufacturing segment. This approach aligns with Broadcom’s ongoing strategy of expanding its business through targeted acquisitions. Meanwhile, TSMC, the world's largest contract chip maker, is reportedly considering forming an investor consortium to acquire Intel’s fabrication plants, which would further strengthen its position in the global semiconductor market. All discussions remain preliminary, and no formal offers have been made.
Intel has been struggling to regain its foothold in chip manufacturing amid increasing competition from TSMC and others. Pat Gelsinger, the company’s previous CEO, was ousted in December after a series of setbacks including delays in manufacturing plans, a decline in AI chip market share, and a reliance on government subsidies to fund factory expansions. Intel’s financial struggles, including $7 billion in losses from its chipmaking segment in 2023 and a 60% decline in share price, have made it an acquisition target.
Any potential deal faces a major roadblock, however: U.S. government opposition. The Trump administration has voiced strong concerns over the possibility of a foreign company operating Intel’s U.S.-based chip fabs. A White House official recently stated that while foreign investment is generally encouraged, Intel’s domestic manufacturing capabilities are seen as strategically important, making it unlikely that a takeover by TSMC would receive government approval.
This stance complicates any potential deal, especially as the U.S. government has been actively subsidizing domestic semiconductor production to reduce reliance on foreign chip makers. If Broadcom and TSMC move forward with their plans, they may need to navigate regulatory hurdles and find domestic partners to satisfy national security concerns.
A breakup of Intel would mark a shift toward specialization, with companies focusing on either chip design or manufacturing. Whether these acquisition talks gain momentum or stall due to political and economic factors remains to be seen.
