Chipmakers TSMC and Broadcom (NASDAQ: AVGO) are considering separate deals for rival Intel (NASDAQ: INTC), which could split the chipmaking icon in half, the Wall Street Journal reported over the weekend.
TSMC has studied taking over some or all of Intel’s chip plants, as part of a consortium or through other means, the WSJ report said, citing people with knowledge of the matter.
Separately, Broadcom has been eyeing Intel’s chip design and marketing business and has informally discussed making a bid, although it will only do so if it finds a partner for Intel’s manufacturing business.
Broadcom and TSMC are not working together on the deal, the WSJ report said, and talks are early-stage. Intel has also not been approached.
The WSJ report comes amid increased speculation over Intel as a buyout target, as the legacy chipmaker largely fell behind the broader industry in recent years. The company’s foundry business has consistently hemorrhaged money while also facing heightened competition from TSMC.
Intel’s chips business has faced increased competition from players such as Broadcom, Qualcomm (NASDAQ: QCOM), AMD (NASDAQ: AMD), and Nvidia (NASDAQ: NVDA). The company has largely lagged behind its rivals in capitalizing on an artificial intelligence-fueled spike in chip demand over the past two years.
Intel has already begun separating its foundry business from the rest of the company- a move that could herald a break-up.
The WSJ report said U.S. President Donald Trump’s administration is also involved in talks over Intel’s fate, although it was unlikely that the President would support a deal that gave a foreign entity control over U.S. factories.
The company is the biggest recipient of financial support under the CHIPS Act.
Intel is also seeking a new CEO after Pat Gelsinger was ousted in December over a failed turnaround plan.
