Intel could be sold off in parts: Deals with TSMC and Broadcom under discussion

Intel is at the heart of a possible deal that may lead to the company being divided between two major industry players—TSMC and Broadcom. According to The Wall Street Journal, both firms are considering acquiring different segments of Intel, but the process is complicated by the manufacturer’s financial struggles and potential opposition from U.S. authorities.

Sources indicate that Broadcom is eyeing Intel’s chip design and marketing divisions, aligning with its strategy of expanding through mergers and acquisitions. However, Broadcom has no interest in Intel’s manufacturing facilities and is therefore seeking a partner willing to take on that part of the business.

Meanwhile, TSMC, the world’s largest contract chip manufacturer, is reportedly considering acquiring Intel’s lithography facilities. Some sources suggest that the Taiwanese company may form an investor consortium to finance the deal, further strengthening TSMC’s position in the global semiconductor industry.

Interest in breaking up Intel has grown amid the company’s severe financial difficulties. In 2023, its manufacturing division reported losses of $7 billion, while Intel’s stock price has plummeted 60% in recent years. The situation is further exacerbated by delays in production plans, a declining presence in the AI chip market, and heavy reliance on government subsidies.

At this stage, discussions remain in their early phases, and Intel has yet to receive any formal offers. However, if the companies move forward, the deal could radically reshape the semiconductor market, redistributing power among key players. For now, Intel remains under intense scrutiny from investors and competitors, with its future hanging by a thread.