Intel’s competitors, Taiwan Semiconductor Manufacturing Co (TSMC) and Broadcom, are reportedly exploring opportunities that could lead to a split of the storied American chipmaker, according to a report by the Wall Street Journal on Saturday, citing informed sources.
Broadcom has expressed interest in Intel’s chip design and marketing operations. The company has engaged in discussions regarding a potential acquisition but may only move forward if it can secure a partner interested in Intel’s manufacturing segment, the report indicates.
Meanwhile, TSMC, the leading global contract chip manufacturer, is investigating the possibility of acquiring control over some or all of Intel’s fabrication facilities, which could involve forming an investor consortium or utilizing other strategic frameworks, as per the Journal’s report.
It is important to note that Broadcom and TSMC are conducting their evaluations independently. Discussions between the companies are still in preliminary stages and mostly informal, the report added.
Frank Yeary, Intel’s interim executive chairman, is spearheading these negotiations with potential buyers and is also engaging with officials from the Trump administration, who have expressed concerns regarding the future of a company deemed essential for national security.
Yeary has reportedly communicated to those in his circle that his primary objective is to maximize shareholder value for Intel, the report said.
Intel, Broadcom, TSMC, and the White House did not provide immediate comments in response to Reuters’ inquiries.
An official from the White House told Reuters on Friday that the Trump administration might oppose foreign entities operating Intel’s U.S. chip plants, following Bloomberg’s report that TSMC was considering acquiring a controlling stake in Intel’s facilities at the president’s suggestion.
The official stated that while the administration welcomes foreign investment in U.S. manufacturing, it is “unlikely” to support a scenario where a foreign firm manages Intel’s factories.
Bloomberg reported that Trump’s administration raised the possibility of a collaboration between Intel and TSMC in recent meetings, which TSMC officials found appealing, according to a source familiar with the discussions.
Intel has significantly benefited from the U.S. initiative to bring critical chip manufacturing back onshore, a strategy promoted by former President Joe Biden.
The U.S. Commerce Department indicated in November that it is nearing a $7.86 billion (approximately Rs. 68,248 crore) subsidy agreement for Intel’s operations.
Intel stands out among a select group of chipmakers that both design and manufacture semiconductors.
In contrast, TSMC has a market valuation that is about eight times greater than that of Intel. The Taiwanese firm serves high-profile clients, including Nvidia, a leader in AI chips, and AMD, a significant competitor to Intel in the PC and server markets.
Former Intel CEO Pat Gelsinger, who was ousted the previous year, set ambitious expectations for the company’s manufacturing and AI capabilities but ultimately fell short, which led to the loss or cancellation of key contracts, Reuters has reported.
Last year, Intel’s stock price plummeted by around 60 percent due to a capital-intensive strategy aimed at enhancing its manufacturing capabilities—an initiative pushed by Gelsinger—which strained the company’s finances and led to a workforce reduction of approximately 15 percent.
© Thomson Reuters 2025
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