TSMC and Broadcom Reportedly Eye Key Business Segments
Intel Corp (INTC) is once again at the center of industry speculation as reports suggest that semiconductor giants Taiwan Semiconductor Manufacturing Co. (TSMC) and Broadcom (AVGO) are considering deals that could lead to a breakup of the struggling chipmaker.
According to a Wall Street Journal report, Broadcom is exploring control over Intel’s chip design and marketing division, while TSMC is reportedly evaluating the possibility of acquiring some or all of Intel’s chip manufacturing plants.
The potential breakup could unlock significant value for Intel’s long-suffering shareholders. Evercore analyst Mark Lipacis estimates Intel’s conservative valuation at $167 billion, or $38.24 per share—substantially higher than its current market cap of $102 billion. With a more optimistic financial outlook, Lipacis suggests Intel could be worth up to $237 billion, or $54.18 per share.
However, regulatory and structural hurdles could complicate any potential deal. Lipacis warns that global regulatory approvals, Intel’s foundry inefficiencies, and its heavily loss-making chip fabrication unit could pose challenges. Bank of America analyst Vivek Arya further highlighted that any transaction involving TSMC would be constrained by U.S. CHIPS Act funding, which mandates Intel retain majority ownership of its foundry business. Additionally, geopolitical concerns—especially under a potential second Trump administration—could hinder foreign ownership of a company with deep ties to the U.S. Department of Defense.
Intel has struggled with declining financials, parting ways with CEO Pat Gelsinger in December. As interim leadership seeks to stabilize operations, Wall Street expects a permanent CEO to explore strategic options—including a potential breakup—to restore investor confidence.
Intel’s fourth-quarter results underscore its challenges, with sales down 7% to $14.3 billion and net earnings plunging 76%. The company expects to break even this year, amplifying the urgency for decisive leadership and restructuring.
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