Feb 17, 2025 11:00:00

Broadcom and TSMC reportedly considering splitting off Intel's business and acquiring it

Intel, which is struggling with financial difficulties, is reported to

have cut its workforce by 15,000 people in August 2024, and has canceled chip factory projects and sold businesses in order to restructure its business. It was also reported that Intel's competitor Qualcomm was trying to acquire it , but it has now been reported that 'Broadcom and TSMC are considering a deal to split Intel.'

Exclusive | Broadcom, TSMC Weigh Possible Intel Deals That Would Split Storied Chip Maker - WSJ
https://www.wsj.com/tech/broadcom-tsmc-eye-possible-intel-deals-that-would-split-storied-chip-maker-966b143b

Broadcom, TSMC reportedly exploring deals that would split up Intel | TechCrunch
https://techcrunch.com/2025/02/16/broadcom-tsmc-reportedly-exploring-deals-that-would-split-up-intel/

According to a report from the Wall Street Journal, Broadcom , a fabless company that manufactures semiconductor products for communications infrastructure, and TSMC , the world's largest semiconductor contract manufacturer, are each planning to acquire part of Intel's business.

Specifically, Broadcom is reportedly considering buying Intel's chip design and marketing business. Broadcom is reportedly informally discussing a bid with advisers, but 'the deal would only come to fruition if it can find a partner for Intel's manufacturing business,' The Wall Street Journal reported.

Meanwhile, TSMC is reportedly considering taking control of some or all of Intel's chip factories as part of a consortium of investors or other structure. Broadcom and TSMC are not in a working relationship, and all discussions are reportedly preliminary and largely informal.

Both the Broadcom and TSMC acquisition plans are preliminary and nothing has been submitted to Intel. TSMC is reportedly considering a deal with the encouragement of the Trump administration, but a White House official said, 'It's unlikely the administration would support a deal that would give Intel fab management to a foreign company.'

Intel has been the target of acquisitions by its peers since posting a $1.61 billion loss in the second quarter of 2024. In September 2024, it was reported that Qualcomm was considering acquiring part of Intel's chip design division , but the acquisition plan was ultimately withdrawn .

Intel announces second quarter 2024 financial results, announces deficit of over 240 billion yen and cuts about 15,000 jobs - GIGAZINE