Intel may be split up under takeover pressure from Broadcom and TSMC

According to Techspot , Intel is facing a scenario of being split into two companies as Broadcom and TSMC target separate business segments of the company. As Intel's board of directors searches for a new CEO, the results of these deals could significantly affect the company's long-term strategy.

If Intel is split into two companies, it could lose its competitive advantage in a closed supply chain, creating an opportunity for rivals to strengthen their position in the semiconductor market.

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In a separate development, TSMC is exploring the possibility of taking over some or all of Intel’s factories. The company could lead an investment consortium or use other transaction structures to take control of Intel’s manufacturing operations. If the deal goes through, Intel would lose the closed supply chain that has been a core competitive advantage.

While Broadcom and TSMC are not working together, the fact that both companies are interested in Intel shows the weakness of the American semiconductor giant. While a breakup of Intel was previously unlikely, it is now more likely than ever.

Intel has made several moves to prepare for a possible spinoff of its manufacturing business. The company currently operates its factories as independent units, taking orders from both internal and external customers. This makes it easier for Intel to transfer manufacturing if an acquisition occurs.

The US government is closely monitoring the situation due to Intel's importance to national security. Intel's interim executive chairman, Frank Yeary, is said to be in discussions with both interested parties and Washington officials to find the best solution for shareholders.

TSMC wants to take over Intel's factory but will have difficulty adapting technology, and Intel is at risk of losing its competitive advantage in chip manufacturing.

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However, if TSMC were to take over Intel’s plant, the deal would face many obstacles. A foreign company controlling a key US chip manufacturing facility may not be approved by the administration. Some sources said the Trump administration had asked TSMC to consider the option, but a White House official said the president was unlikely to support the deal.

In addition to political hurdles, TSMC also faces technical challenges. Converting Intel's manufacturing technology to TSMC's processes would require significant costs and time. Additionally, US immigration policies could limit the ability of TSMC engineers to deploy to these factories.

Additionally, the Chips Act of 2022, which provides massive funding to Intel to boost domestic chip manufacturing, requires the company to retain majority control of its factories if there is any move to spin it off.

While the talks are still in the early stages, the developments represent a significant shift in Intel’s position in the semiconductor industry. If either deal goes through, the company could lose its vertically integrated model and instead split into two independent companies.

Source: https://thanhnien.vn/intel-co-the-bi-chia-tach-truoc-ap-luc-thau-tom-tu-broadcom-va-tsmc-185250218115618194.htm