Intel is attracting interest from several industry giants. According to our colleagues at the Wall Street Journal, Broadcom and TSMC would like to buy some of the firm's divisions. The two interested parties are not working together. In fact, they covet different parts of Intel.
What do Broadcom and TSMC want?
Broadcom is said to be looking primarily at "Intel's chip design and marketing activities". For the moment, the company is discussing "informally with its advisers about the possibility of making an offer". According to the media, Broadcom will take the plunge if it finds "a partner for Intel's manufacturing activity". The company, which specializes in designing and manufacturing semiconductors and communications solutions, doesn’t want Intel’s manufacturing business without the support of a partner.
Broadcom has acquired several tech companies in the past, including CA Technologies, a provider of management software; Brocade Communications, a company specializing in storage and networking solutions; and Symantec’s enterprise division. Broadcom has also been involved in several proposed takeovers, including a proposed acquisition of Qualcomm.
For its part, TSMC is reportedly looking to take “control of some or all of Intel’s chip factories, potentially as part of a consortium of investors or other structure.” The world’s largest semiconductor maker reportedly considered the idea of breaking up Intel at the request of the Donald Trump administration. However, "a White House official said the president was unlikely to support a deal involving a foreign entity that operates Intel's factories," claims the Wall Street Journal.
Intel is in crisis
The talks with Broadcom and TSMC come as Intel is going through a rough patch. In the last quarter of 2024, the company recorded an operating loss of $16.6 billion. This is the largest loss in its history. The origins of this historic fall are essentially the costs generated by the Intel Foundry division, responsible for manufacturing chips for customers outside the group. In this context, Pat Gelsinger, Intel's CEO for just over three years, has jumped ship.
With its back to the wall, Intel has announced a $10 billion savings plan. This includes reducing the company's workforce and suspending several European projects, including the construction of new factories in Germany and Poland. The resale of certain divisions is part of this desire for savings and restructuring.
Note that this is not the first time that Intel has attracted the interest of several buyers. Last September, Qualcomm apparently approached Intel in the hope of negotiating a takeover. In the past, key players such as ARM and Lattice Semiconductor have also entered into negotiations.
Source: WSJ
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