Broadcom and Taiwan Semiconductor Manufacturing Company (TSMC) are preparing to acquire certain parts of Intel. These potential deals involve Broadcom taking over Intel’s chip design and marketing operations, while TSMC would acquire the manufacturing facilities.

Broadcom is closely monitoring Intel’s chip design and marketing divisions.

The company is in discussions with advisors regarding a potential acquisition offer. Meanwhile, TSMC aims to take control of Intel’s factories. The Taiwan-based tech giant is exploring options such as making the acquisition directly or through an investor consortium.

US Government Keeping a Close Eye

According to the Wall Street Journal, these potential deals signify a split of Intel. The Donald Trump administration has reached out to the company’s Interim Chairman, Frank Yeary. The US views Intel as a critical technology company from a national security perspective and is cautious about foreign control of its facilities.

Approval for TSMC Might Not Be Granted

Established in Taiwan in 1987, TSMC is the world’s largest independent semiconductor manufacturer. Among leading companies in the field, TSMC has also begun making significant investments in the lighting and solar energy industries. The potential acquisition of Intel’s factories by the Taiwan-based company that supplies chips to tech giants like Apple, Qualcomm, Nvidia, AMD, and Broadcom could be vetoed by the Trump administration.

Received Billions in State Support

In 2023, Intel received a $7.86 billion government subsidy from the US Department of Commerce. The Joe Biden administration provided significant support to Intel to strengthen critical chip production in the US.

Significant Discrepancy in Market Values

While Intel is a more recognized brand in the global market, TSMC holds a much larger market share. Intel’s market value is estimated to be $100 billion, whereas TSMC’s market value is said to be $1 trillion. This makes TSMC the 11th highest market value company in the world.