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Asif Mohammad Sovon
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Asif Mohammad Sovon @asif_mohammad_sovon

Meet Asif Mohammad Sovon, an IT Assistant in the Bangladesh Air Force and a tech writer for Fileion....

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Feb 18, 2025

Intel at Intersections: Will TSMC and Broadcom Reshape the Chip Industry?

Intel logo
Intel Corporation is now at the center of potential acquisition discussions that could lead to its division. Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom Inc. are exploring separate agreements to acquire different segments of Intel's operations.

TSMC's Interest in Intel's Manufacturing Facilities

TSMC, the world's largest contract chipmaker, is looking into the possibility of taking control of Intel's semiconductor fabrication plants. This consideration comes after encouragement from the Trump administration, which seeks to boost domestic chip production and ensure the U.S. remains a leader in critical technologies.
“while foreign investment is welcome, it is "unlikely" that the administration will support a foreign entity operating Intel's factories in the U.S.”
-White House official 

Broadcom's Pursuit of Intel's Design and Marketing Divisions 

On the other hand, Broadcom is evaluating a bid for Intel's chip design and marketing business. The company has engaged in informal discussions with its advisors. But they would likely proceed only when there is a partner to take over Intel's manufacturing operations. These talks are in the initial stages, and no formal offers have been made.

Intel's Recent Struggles and Leadership ChangesFrank Yeary

Intel has faced significant challenges in recent years which include delays in manufacturing advancements and losing market share to competitors like TSMC and Nvidia. These issues have led to a significant downhill in Intel's stock value. The recent unseat of CEO Pat Gelsinger in December 2024 is also making a minus point. The company's interim executive chairman, Frank Yeary, is reportedly leading discussions with potential suitors and government officials, focusing on maximizing shareholder value.

National Security and Industry Implications

Remarks by President Trump

The potential partition of Intel raises concerns about national security and the future of domestic semiconductor manufacturing. The U.S. government has a strong interest in ensuring that critical technology assets remain under American control. Any foreign acquisition of Intel's facilities would require a thorough review and approval, given the strategic importance of semiconductor production.
 
As TSMC and Broadcom consider potential acquisitions, Intel is at a key moment that could change the semiconductor industry's landscape. The results of these discussions will have extensive implications for technology, national security, and the global supply chain.
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