Broadcom is considering Intel's chip design and marketing division, according to a Wall Street Journal (WSJ) source. However, the company is only open to an acquisition offer if it finds another partner to take over Intel's manufacturing division.

Meanwhile, TSMC is also exploring taking control of part or all of Intel's chip factories.

Broadcom and TSMC are not collaborating with each other, all discussions are still in the early stages, according to WSJ.

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Intel dominated the global semiconductor market for decades before being left behind by TSMC and Samsung. Photo: Shutterstock

Intel’s recent struggles have made it a takeover target, which could eventually lead to a breakup of the once-dominant semiconductor giant. A split would also fit with the current trend toward either chip manufacturing or chip design.

Intel's acting CEO, Frank Yeary, is leading talks with potential buyers as well as U.S. government officials who are concerned about the fate of a company considered vital to national security, the people said.

Intel’s troubles began when it fell behind TSMC in producing the most advanced chips, and the company also failed to turn around the company under former CEO Pat Gelsinger, who was fired in December 2024.

Intel has also begun separating its chipmaking division from the rest of the company, a move analysts see as preparation for a split.

Any deal involving the takeover of Intel's factories from TSMC and other investors would require US government approval.

The CHIPS and Science Act of 2022 provides $53 billion in funding for the domestic semiconductor industry. Intel is the largest recipient, with up to $7.9 billion to build new factories.

However, the company is required to maintain a majority stake in the plants if they are spun off into new entities.

The deal also faces other operational complications. Intel’s factories were largely set up to make Intel chips. The company only began manufacturing for outside customers in recent years.

So restructuring Intel's factory to produce advanced chips for TSMC would be a cost and technical challenge.

One challenge TSMC faces is that it may be limited in bringing in Taiwanese (China) personnel to oversee production, given Donald Trump’s stance on immigration. Most of TSMC’s engineers come from Taiwan and other countries, not the United States.

(According to WSJ)