Intel rivals Taiwan Semiconductor Manufacturing Co. and Broadcom are each eyeing potential deals that will break the US chipmaking icon in two, the Wall Street Journal reported Saturday, citing people accustomed to the matter.
Broadcom has been closely examining Intel’s chip design and marketing business, the Journal reported, adding that the corporate had discussed a possible bid with its advisers but would likely only proceed if it found a partner for Intel’s manufacturing business.
TSMC, the world’s biggest contract chipmaker, has individually studied controlling some or all of Intel’s chip plants, potentially as a part of an investor consortium or other structure, the report said.
Broadcom and TSMC will not be working together, and the entire talks to date are preliminary and largely informal, the Journal added.
Intel’s interim executive chairman, Frank Yeary, has been leading the discussions with possible suitors and Trump administration officials, who’re concerned concerning the fate of an organization seen as critical to national security, the report said.
Yeary has been telling individuals near him that he’s most focused on maximizing value for Intel shareholders, the report added.
Intel, Broadcom, TSMC and the White House didn’t immediately reply to Reuters’ requests for comment.
A White House official told Reuters on Friday that President Trump’s administration won’t support Intel’s US chip factories being operated by a foreign entity after Bloomberg reported that TSMC was considering taking a controlling stake in Intel’s factories at Trump’s request.
The White House official said the Trump administration supported foreign corporations investing and constructing within the US but was “unlikely” to support a foreign firm operating Intel’s factories.
Bloomberg reported that Trump’s team raised the thought of a deal between the 2 firms in recent meetings with officials from TSMC who were receptive, citing an individual accustomed to the matter.
Intel was amongst the biggest beneficiaries of the US push to onshore critical chip manufacturing led by the Biden administration.
The US Commerce Department said in November it was finalizing a $7.86 billion government subsidy for Intel. The corporate is one among a number of chipmakers that design and manufacture semiconductors.
TSMC boasts a market valuation about eight times larger than that of Intel. The Taiwanese company’s customers include AI chip leader Nvidia and AMD, which is Intel’s fierce rival in PC and server markets.
Former Intel CEO Pat Gelsinger, who was ousted last yr, set sky-high expectations for Intel’s manufacturing and AI capabilities amongst major clients but fell short, resulting in the chipmaker losing or canceling contracts, Reuters reported previously.
Intel’s shares lost about 60% of their value last yr as its capital-intensive bid to bolster manufacturing – a method championed by Gelsinger – strained the corporate’s money flow and ultimately led to it cutting about 15% of its workforce
Intel rivals Taiwan Semiconductor Manufacturing Co. and Broadcom are each eyeing potential deals that will break the US chipmaking icon in two, the Wall Street Journal reported Saturday, citing people accustomed to the matter.
Broadcom has been closely examining Intel’s chip design and marketing business, the Journal reported, adding that the corporate had discussed a possible bid with its advisers but would likely only proceed if it found a partner for Intel’s manufacturing business.
TSMC, the world’s biggest contract chipmaker, has individually studied controlling some or all of Intel’s chip plants, potentially as a part of an investor consortium or other structure, the report said.
Broadcom and TSMC will not be working together, and the entire talks to date are preliminary and largely informal, the Journal added.
Intel’s interim executive chairman, Frank Yeary, has been leading the discussions with possible suitors and Trump administration officials, who’re concerned concerning the fate of an organization seen as critical to national security, the report said.
Yeary has been telling individuals near him that he’s most focused on maximizing value for Intel shareholders, the report added.
Intel, Broadcom, TSMC and the White House didn’t immediately reply to Reuters’ requests for comment.
A White House official told Reuters on Friday that President Trump’s administration won’t support Intel’s US chip factories being operated by a foreign entity after Bloomberg reported that TSMC was considering taking a controlling stake in Intel’s factories at Trump’s request.
The White House official said the Trump administration supported foreign corporations investing and constructing within the US but was “unlikely” to support a foreign firm operating Intel’s factories.
Bloomberg reported that Trump’s team raised the thought of a deal between the 2 firms in recent meetings with officials from TSMC who were receptive, citing an individual accustomed to the matter.
Intel was amongst the biggest beneficiaries of the US push to onshore critical chip manufacturing led by the Biden administration.
The US Commerce Department said in November it was finalizing a $7.86 billion government subsidy for Intel. The corporate is one among a number of chipmakers that design and manufacture semiconductors.
TSMC boasts a market valuation about eight times larger than that of Intel. The Taiwanese company’s customers include AI chip leader Nvidia and AMD, which is Intel’s fierce rival in PC and server markets.
Former Intel CEO Pat Gelsinger, who was ousted last yr, set sky-high expectations for Intel’s manufacturing and AI capabilities amongst major clients but fell short, resulting in the chipmaker losing or canceling contracts, Reuters reported previously.
Intel’s shares lost about 60% of their value last yr as its capital-intensive bid to bolster manufacturing – a method championed by Gelsinger – strained the corporate’s money flow and ultimately led to it cutting about 15% of its workforce
