According to The Wall Street Journal, Intel may face the risk of a breakup as Broadcom and TSMC are exploring potential acquisition deals that could separate the American chipmaker. TSMC is currently considering acquiring a stake in Intel's foundry services division, while Qualcomm and Broadcom are also investing to enhance Intel's manufacturing capabilities.
Broadcom has reviewed Intel's chip design and marketing business and discussed possible bids with advisors. However, sources indicate that Broadcom is unlikely to pursue an acquisition proposal for Intel's manufacturing division without finding a partner.
Additionally, TSMC is systematically considering the acquisition of some or all of Intel's chip factories, potentially through an investor consortium or other structures. However, discussions between TSMC and Intel remain in the preliminary and informal stages.
Intel's interim executive chairman, Frank Yir, is in talks with potential investors and officials from the Trump administration. Yir stated that his main focus is to maximize value for Intel's shareholders. However, the White House has expressed concerns about foreign control of Intel's U.S. factories. A White House official told Reuters that the government is unlikely to support foreign companies operating Intel's factories.
While the government supports foreign investment in U.S. manufacturing, national security remains a top priority. Under the Biden administration's push, the U.S. is committed to bringing chip manufacturing back home, a move that has previously benefited Intel. Last November, the U.S. Department of Commerce announced it was finalizing a $7.86 billion subsidy for Intel.
Bloomberg reported that the Trump team recently discussed a deal with TSMC regarding Intel, to which TSMC showed a positive attitude. In recent years, Intel has faced a series of challenges under pressure from contract losses and intensified competition, with main competitors including Nvidia and AMD. Former CEO Pat Gelsinger was dismissed last year after failing to deliver on expectations for Intel's manufacturing and artificial intelligence capabilities, leading the company to face financial and operational difficulties.
In its latest financial report, Intel's revenue was $14.26 billion, exceeding market expectations of $13.81 billion, but down 7% compared to the same period last year. This marks the third consecutive quarter of revenue decline for Intel. The company reported a net loss of $126 million, with a loss of 3 cents per share, compared to a net profit of $2.67 billion and earnings of 63 cents per share in the same period last year.
Key Points:
💼 Intel faces breakup risk, TSMC and Broadcom exploring acquisition deals.
💰 Broadcom intends to acquire Intel's chip design business but needs to find a partner.
🏛️ The White House expresses concerns about foreign control of Intel's factories, with national security as a primary consideration.
