- Intel is currently without CEO and its future does not seem clear
- TSMC and Broadcom are interested in areas separated from the business manufacturer’s activity
- Any agreement is facing major obstacles – government rules, factory backing and political decline
Although he made his debut on a super fast chips in 2024 in order to correspond to his Rival AMD, Intel is not the power it was.
While Nvidia is the second company in the world (behind Apple) by market capitalization, worth 3.4 billions of dollars, and AMD is in 80th place, worth 183.27 billion dollars, Intel, Currently without CEO after the departure of Pat Gelsinger in December 2024, is in language. In 173rd place at 102.18 billion dollars – placing it between Rio Tinto and Airbnb.
This has led to all kinds of rumors surrounding the future of Intel, including the speculation it could merge with the former AMD foundry, Globalfoundries, in a potential agreement of several billion dollars. But now, maybe the saddest news of all comes from a new Wall Street Journal Report, which indicates that Taiwan Semiconductor Manufacturing Co. (TSMC) and Broadcom are considering transactions separately that could divide the manufacturer of emblematic chips in two.
Big obstacles to overcome
The report says that Broadcom has “examined the intel design and marketing activities closely” and, according to people familiar with the issue, “was informal with its advisers making an offer, but would probably do it that if He finds a partner for Intel manufacturing activities, people have declared.
At the same time, TSMC plans to take control of Intel’s chip plants (either part or all) – a decision that was suggested by the Trump administration. However, the Wsj A White House official said that the president is “unlikely to support an agreement involving a foreign entity operating Intel factories”, what you want.
THE Wsj Stress Broadcom and TSMC did not team up to sculpt Intel in two – these are unrelated possibilities – and all talks are so far “preliminary and largely informal”.
There are a few obstacles that are held on the path of such an agreement. The 2022 Chips Act created a 53 billion dollars grant program to stimulate the production of national fleas, Intel receiving the largest part – up to 7.9 billion dollars. As a condition of financing, the flea manufacturer must maintain a majority participation in its factories if they are never transformed into a separate entity. The US government should also approve any agreement involving TSMC or other investors taking control of Intel facilities.
THE Wsj Also note that any agreement is faced with operational problems, noting that Intel factories have been largely put in place to produce Intel fleas, and the company has started trying to make chips for external customers in recent years. “Relo the Intel factories to make advanced fleas like TSMC would be a significant and expensive engineering challenge,” he adds.
