Semiconductor companies Broadcom and Taiwan Semiconductor Manufacturing Co (TSMC) are reportedly eyeing deals that would allow them to split rival chipmaker Intel. According to The Wall Street Journal, the two companies are not working together and are looking to acquire a chunk of Intel in separate deals.
Broadcom is interested in Intel’s chip design and marketing division and has already held internal discussions about a possible approach. However, the Palo Alto, California-headquartered company would only be interested in pulling the trigger on the deal if it finds a partner that would take on the manufacturing division of Intel.
On the other hand, TSMC, which is considered the world’s largest contract semiconductor manufacturer, is believed to be exploring a deal that would give it control of Intel’s chip plants. The exact pathway towards achieving that goal, with investor consortium being one of the options, is yet to be determined.
Frank Yeary, the interim executive chairman of Intel, is currently in charge of the talks with potential suitors. Yeary’s ultimate goal is reportedly to find a deal that would provide the most value to the company’s shareholders.
Once a dominant force in the semiconductor industry, Intel is now considered well behind its main competitors. The company failed to make a timely transition to artificial intelligence chips, causing its profits to shrink.
In an attempt to turn things around, the company started operating its chip design and manufacturing divisions as separate entities. However, the move has yet to give desired results.
Intel stock plummeted as a result of the company’s struggles, losing more than 60% of its value in 2024. The stock closed at $23.60 per share on Friday.