According to a report in The Wall Street Journal, Broadcom and TSMC are separately exploring
deals to take over parts of Intel.
Broadcom is interested in buying Intel’s chip design and marketing division but doesn’t want to handle Intel’s manufacturing operations. Instead, it’s looking for a partner to manage the factory side of the business. This would let Broadcom focus on chip development while leaving the manufacturing to someone else.
At the same time, TSMC is considering taking over some or all of Intel’s chip plants. The company may do this as a part of an investor consortium, ensuring financial and strategic support.
Intel’s recent financial struggles have made it an appealing target for competitors. In September, The Wall Street Journal reported that Qualcomm showed interest in acquiring Intel. Now, with Broadcom and TSMC also exploring potential deals, it’s clear that others are eyeing Intel’s troubles as an opportunity.
If either Broadcom or TSMC successfully buys parts of Intel, the chip industry could experience significant change. Once a market leader, Intel now faces intense pressure from rivals eager to capitalize on its challenges. However, it remains uncertain whether any deals will take place.
Intel has been working hard to regain its position in chip manufacturing, facing stiff competition from TSMC and others. The company’s former CEO, Pat Gelsinger, was ousted in December following setbacks, including delays in production, a decline in AI chip market share, and its growing dependence on government subsidies for factory expansions. Intel also suffered $7 billion in losses from its chipmaking segment in 2023 and saw its share price drop by 60%, making it an attractive target for acquisition.
