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 business, while TSMC would acquire the production facilities.

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

The company is in discussions with its advisors regarding a possible acquisition offer. Meanwhile, TSMC aims to take control of Intel’s factories. The Taiwan-based tech giant is considering 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 the splitting of Intel. The Trump administration has reached out to the company’s Interim Board Chairman, Frank Yeary. The US views Intel as a critical technology company in terms of national security and is cautious about foreign control of its facilities.

Approval for TSMC May Not Be Granted

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

Received Billions in State Support

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

Significant Disparity in Market Values

While Intel is a more well-known brand in the global market, TSMC holds a much larger market share. The American manufacturer’s market value is $100 billion, whereas TSMC is estimated to have a market value of $1 trillion. This makes TSMC the 11th company in the world with the highest market value.