Multiple US media outlets are reporting that Intel may be broken up to allow separate companies or consortiums acquire the two main parts of the business.
Intel last year laid off around 15,000 staff globally in response to its poor financial performance, and it is believed that Broadcom is waiting in the wings to acquire Intel’s chip design business.
Separately, Taiwan’s TSMC is reportedly putting together a consortium to buy Intel’s contract chip building unit, Intel Foundry. Broadcom is not interested in Intel’s fabs.
Venture capital companies are said to be involved in the acquisition plans. Neither Intel, Broadcom or TSMC have commented on the latest speculation around Intel’s future.
At recent investor conferences, Intel executives have acknowledged that competitors in the chip market may well be circling on the business, but up to now no names have been put in the frame.
One potential obstacle to any deals may well be the new US administration though, with president Trump keen to protect key US critical infrastructure, and jobs.
Bearing in mind also that the Biden administration invested billions of dollars in the US chip building ecosystem, as part of a national economic recovery plan, following covid, it may be politically difficult to allow a large chunk of it to now be given to a Taiwanese market rival.
As well as US fabs being an acquisition target, Intel facilities in both Israel and Ireland could also be included in any purchase.
Before the latest speculation, Intel was already in the process of separating the chip design and fabrication businesses, with separate senior execs and boards.
Whatever happens, it is clear that Intel will have to do more to make up lost ground in the AI space, with the likes of Nvidia and smaller rivals already making hay in the growing data centre and enterprise market.
