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The struggling semiconductor giant Intel could be split in two. According to insiders, chipmaker rivals TSMC and Broadcom are making independent offers for parts of the US company.
The competitors of US chip manufacturer Intel, Taiwan Semiconductor Manufacturing Co (TSMC) and Broadcom, are apparently currently independently examining business models that could lead to the American chip manufacturer being split in two. This was reported by the "Wall Street Journal" (WSJ) on Saturday (local time), citing people familiar with the matter.
According to the report, Broadcom has closely scrutinized Intel's chip design and marketing business and discussed a potential offer with its advisors. However, according to the WSJ, the company would only proceed with the plan if it could find a partner for Intel's manufacturing business.
Separately, TSMC, the world's largest contract chip maker, has been exploring controlling some or all of Intel's chip factories, possibly as part of a consortium of investors, the report added. Broadcom and TSMC are not yet working together, and any talks so far are preliminary and largely informal, the Journal added.
According to a media report on Thursday, TSMC had already been offered the prospect of a majority stake in chipmaker Intel's factories by representatives of US President Donald Trump (78).
Trump's team brought up the idea of a deal between the two companies at a meeting with TSMC representatives, who were open to the idea, Bloomberg reported, citing an insider. Such a deal could act as a financial lifeline for Intel. Intel, Broadcom and TSMC did not immediately respond to requests for comment from Reuters.
mhe/reuters
