Intel is at the centre of potential acquisition talks, with Taiwan Semiconductor Manufacturing (TSMC) and Broadcom each evaluating separate deals that could divide the US chipmaker’s operations. According to The Wall Street Journal, which broke the story, both companies have been informally assessing different parts of Intel’s business, though no formal bids have been made.
TSMC has examined acquiring some or all of Intel’s semiconductor fabrication plants. The contract chipmaker is considering various approaches, including forming a consortium with investors. Broadcom, meanwhile, has been reviewing Intel’s chip design and marketing business. The company has held discussions with advisers about a potential bid, but any move would depend on securing a partner to take over Intel’s manufacturing operations.
Intel’s manufacturing and chip design units draw interest
While both firms are exploring different parts of Intel, they are not working together on a joint bid. Discussions are reportedly still in their early stages, and Intel has not yet been approached with a formal offer. Neither TSMC nor Broadcom has publicly commented on their reported interest in acquiring parts of Intel.
Intel has faced increasing pressure in the semiconductor industry as it struggles to harness a surge in demand for chips used to train and run AI applications. While competitors such as Nvidia, Qualcomm, and Broadcom have gained market share, Intel has struggled to keep pace. The company’s foundry business, which produces chips for external customers, has recorded substantial financial losses. In 2024, the unit reported a $13.4bn loss, adding to speculation over Intel’s long-term strategy. The company’s stock lost about 60% of its value last year as its capital-intensive push to expand manufacturing strained cash flow. In response to financial difficulties, Intel cut approximately 15% of its workforce.
The Santa Clara, California-based company has already begun the process of separating its foundry operations from the rest of the company, a move that industry analysts have suggested could lead to further divestitures. Pat Gelsinger, who served as Intel’s CEO until his departure last year, had pursued an aggressive manufacturing expansion strategy. However, the company fell short of expectations in securing major contracts and strengthening its AI capabilities. These struggles contributed to Gelsinger’s ouster and the broader restructuring efforts now underway.
Meanwhile, the Trump administration has taken an interest in discussions about Intel’s future, particularly regarding its US-based chip manufacturing plants. Officials have expressed concern over the possibility of a foreign company gaining control of the facilities. While the administration has supported foreign investment in US semiconductor production, sources familiar with the matter suggest that a deal transferring Intel’s factories to a foreign entity would be unlikely to receive government backing. Intel has been a major recipient of US government funding. In November, the Commerce Department announced a $7.86bn subsidy for the company as part of broader efforts to reduce reliance on overseas semiconductor manufacturing.
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