Taiwan Semiconductor Manufacturing Co. (TSMC) and Broadcom are exploring deals that could lead to the breakup of Intel, according to a report from The Wall Street Journal. Sources familiar with the matter say Broadcom has been evaluating Intel’s chip design and marketing division, engaging advisers about a potential bid. However, Broadcom is hesitant to move forward without a partner willing to take over Intel’s manufacturing operations.
At the same time, TSMC, the world’s largest contract chipmaker, has been looking into acquiring some or all of Intel’s fabrication plants. The report suggests this could happen through an investor consortium or a similar arrangement. Despite both companies exploring options, their efforts are not coordinated, and discussions remain informal and in the early stages.
Intel’s interim executive chairman, Frank Yeary, has been leading negotiations with potential buyers while also engaging with the Trump administration, which is closely watching the situation due to national security concerns. Yeary has reportedly made it clear that his priority is to maximize value for Intel’s shareholders.
Neither Intel, Broadcom, TSMC, nor the White House responded to requests for comment from Reuters. However, a White House official indicated that the Trump administration is unlikely to support a foreign entity running Intel’s U.S.-based chip plants. While the administration supports foreign investment in semiconductor production, handing operational control to an overseas company may not align with national security priorities.
Previously, Bloomberg reported that TSMC had considered taking a controlling stake in Intel’s manufacturing business at Trump’s request, citing a source familiar with those discussions. Intel has benefited significantly from U.S. efforts to strengthen domestic semiconductor production, including a $7.86 billion government subsidy finalized by the Commerce Department in November.
Despite its legacy as a leading chipmaker, Intel has struggled in recent years. Former CEO Pat Gelsinger, removed last year, had aimed to boost Intel’s manufacturing and AI capabilities but failed to meet expectations, leading to lost contracts. Over the past year, Intel’s stock has dropped around 60%, with its aggressive manufacturing expansion straining cash flow and forcing a 15% workforce cut.
Meanwhile, TSMC’s market value is nearly eight times larger than Intel’s, and it supplies major players like Nvidia and AMD—Intel’s biggest rival in the PC and server markets. As talks over Intel’s future continue, the semiconductor industry is watching closely to see if the company remains intact or undergoes a major restructuring.
