TSMC, Broadcom mull deals to carve up Intel

Business news | February 16, 2025

By Peter Clarke

Reports have surfaced that Taiwan Semiconductor Manufacturing Co. (TSMC) and Broadcom are separately exploring deals to split Intel, the struggling chip giant, into its manufacturing and design segments.

TSMC is considering taking over Intel’s manufacturing operations at the behest of President Trump’s White House administration, according to a Bloomberg report citing an unnamed source. This move aligns with efforts to bolster American manufacturing capabilities. Officials from the White House have reportedly raised the idea of a chip manufacturing deal with TSMC, and the foundry has expressed interest. TSMC may acquire some or all of Intel’s chip factories, potentially through a joint venture or as part of an industry consortium that could include US foundry customers, such as Apple and Nvidia. Intel’s position on the possibility of a deal is not clear

Meanwhile, US-headquarterd Broadcom has informally discussed with financial advisors the possibility of bidding for Intel’s chip product business, but only if it can secure a partner to handle Intel’s manufacturing segment, as reported by The Wall Street Journal. Broadcom has not yet approached Intel and may decide against pursuing a deal, the report said.

Broadcom designs, develops, and supplies a broad range of semiconductor, enterprise software, and security solutions. It is well-positioned for the AI era through its sale of networking and AI integration chips. The company is ranked second among semiconductor companies by market capitalization.

Broadcom and TSMC are not collaborating on splitting up of Intel, according to the WSJ, although the deals are complementary.

Any such transactions would likely face regulatory scrutiny and could encounter significant challenges. Despite this, the talks highlight Intel’s vulnerability as it struggles to regain its footing in the competitive semiconductor market.