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2mo ago

Intel Faces Potential Split as Broadcom and TSMC Explore Acquisition Talks

Reports indicate Broadcom may bid for Intel's chip design unit while TSMC considers its manufacturing business, though discussions remain preliminary.

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A man walks past the Intel logo at its booth during the first China International Supply Chain Expo (CISCE) in Beijing, China November 28, 2023. REUTERS/Florence Lo/File Photo
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Overview

  • Intel's stock surged over 10% following reports that Broadcom and TSMC are exploring separate bids for its chip design and manufacturing divisions.
  • Broadcom is reportedly interested in acquiring Intel's chip design and marketing operations, while TSMC is evaluating a stake or control of its manufacturing facilities.
  • The U.S. government has shown interest in ensuring Intel's manufacturing remains domestic, complicating potential deals with foreign entities like TSMC.
  • Intel's financial struggles, including a 60% stock decline in 2024 and ongoing losses in its foundry business, have made it a target for restructuring and acquisition.
  • Analysts suggest splitting Intel's product and foundry operations could unlock value, but regulatory and logistical challenges may slow any potential deals.