Two major industry giants have emerged as potential suitors for different segments of Intel’s business, according to sources familiar with the matter cited by The Wall Street Journal.
The semiconductor giant’s recent performance challenges have transformed it from an industry leader to a potential acquisition target. This vulnerability was exposed in September when the Journal reported that Qualcomm had started preliminary takeover discussions with Intel.
Industry powerhouse Broadcom has set its sights on Intel’s lucrative chip design and marketing operations, though the company would need to secure a partner to handle the manufacturing side of the business. Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract chipmaker, is evaluating the possibility of acquiring Intel’s manufacturing facilities as part of a larger investment group.
This would mark a dramatic turn for Intel, which has long maintained its position as a designer and manufacturer of semiconductor products.
Sources close to the matter reveal that while talks could be underway, no formal proposals have reached Intel, according to the Journal. The Trump administration reportedly encouraged TSMC’s interest in acquiring Intel’s manufacturing facilities, yet this support appears to be wavering. A senior White House official expressed reservations about placing Intel’s crucial manufacturing infrastructure under foreign control.
This could have major implications for Intel’s biggest competitor in the PC market, AMD, tilting the competition in the latter’s favor. Time will tell how Intel will win back control of the market.
