The global semiconductor industry is facing major changes, and Intel, as an industry giant, may face the fate of being spun off. According to the latest report from the Wall Street Journal, Broadcom and TSMC are actively exploring the possibility of acquisition deals that may lead to the split of the US chip maker. TSMC is considering a stake in Intel's foundry service division, while Qualcomm and Broadcom are also increasing investments to enhance Intel's manufacturing capabilities.
Broadcom has conducted an in-depth review of Intel's chip design and marketing operations and discussed possible bids with consultants. However, sources revealed that Broadcom is unlikely to continue to propose acquisition proposals for Intel's manufacturing division until it finds a suitable partner. This move shows Broadcom's cautious attitude towards Intel's business.
In addition, TSMC is systematically considering acquiring some or all of Intel's chip factories, which may be conducted through an investor alliance or other structure. However, the discussion between TSMC and Intel is still in its preliminary and informal stages and no substantive agreement has been reached.
Intel's interim executive chairman Frank Yeri is in talks with potential investors and Trump administration officials. Yeri said his main focus is maximizing value for Intel shareholders. However, the White House expressed concerns about foreign control of Intel's U.S. factories. A White House official told Reuters that the government is unlikely to support foreign companies in operating Intel's factories.
Although the U.S. government supports foreign investment in U.S. manufacturing, national security remains a priority. Driven by the Biden administration, the United States is committed to returning the chip manufacturing industry to the country, a move that has helped Intel. In November last year, the U.S. Department of Commerce said it was finalizing a $7.86 billion subsidy for Intel.
Bloomberg reported that the Trump team recently discussed a deal with TSMC with Intel, and TSMC showed a positive attitude. In recent years, Intel has faced a series of challenges under pressure from contract loss and intensified competition, with major competitors including Nvidia and AMD. Former CEO Pat Kirsinger was fired last year and had high hopes for Intel's manufacturing and artificial intelligence capabilities, but failed to achieve it, causing the company to face financial and operational difficulties.
In the latest financial report, Intel's revenue was $14.26 billion, surpassing market expectations of $13.81 billion, but revenue fell 7% compared with the same period last year. This is the third consecutive quarter of Intel's revenue decline. The company reported a net loss of $126 million, with a loss of 3 cents per share, compared with a net profit of $2.67 billion, with a earnings of 63 cents per share in the same period last year.
Key points:
Intel is facing the risk of spin-off, and TSMC and Broadcom are exploring acquisition deals.
Broadcom is interested in acquiring Intel's chip design business, but needs to find a partner.
The White House expressed concerns about foreign control of Intel factories, with national security as the primary consideration.