Chip Giants Nvidia, AMD, and TSMC Reportedly Eye Intel’s Manufacturing Unit
Intel (INTC) saw its stock climb 3% on Wednesday following reports that a consortium of semiconductor companies, including Taiwan Semiconductor Manufacturing Co. (TSMC), Nvidia (NVDA), and AMD (AMD), is in discussions to take over Intel’s struggling foundry business. The reported talks, first published by Reuters, also suggest Broadcom (AVGO) is involved in the potential deal.
Intel’s foundry business, responsible for producing chips for both Intel and third-party clients, has been a financial drag on the company, contributing to its staggering $18.8 billion net loss in 2024. The segment itself reported an operating income loss of $11.6 billion for the year.
Despite the positive market reaction to the news, Intel’s stock remains down 54% over the past 12 months. Year to date, the stock has gained 1.6%. Meanwhile, Nvidia, despite its dominance in AI chips, has seen its stock decline 14% in 2024 amid concerns over trade restrictions and the sustainability of the AI-driven stock rally.
The reported discussions come as the Trump administration pushes for a stronger domestic semiconductor industry. The U.S. currently accounts for only 12% of global chip production, down from 37% in 1990, making it vulnerable to supply chain disruptions and geopolitical risks, particularly concerning Taiwan.
Both Intel and TSMC have received substantial funding under the CHIPS Act to bolster U.S.-based manufacturing. TSMC recently committed $100 billion to expand its Arizona plants, while Intel is building a massive facility in Ohio—though its completion has been delayed until 2030.
Intel has not commented on the reports, and it remains to be seen whether the potential takeover could mark a turning point for the struggling chipmaker.
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