Intel, the former chip overlord, is rumored to be acquired again, this time by Broadcom and TSMC. According to reports from multiple media outlets including the Wall Street Journal, TSMC and Broadcom are each considering potential transactions for Intel. According to people familiar with the matter,TSMC has been exploring taking control of some or all of Intel's chip factories, possibly as part of an investor consortium or other structure.

Broadcom has been paying close attention to Intel's chip design and marketing business and has had informal discussions with Intel's advisers and may make an acquisition offer after finding a partner in the manufacturing business.

Since this week, as speculation about TSMC's possible cooperation with Intel has spread, Intel's stock price has risen sharply, with a cumulative increase of more than 23%.


The attitude of the U.S. government may pose potential obstacles to acquisitions

Under regulations, any deal involving TSMC and other investors taking control of Intel factories would require U.S. government approval.

The Chip Act passed in 2022 established a US$53 billion domestic chip manufacturing subsidy program. Intel is the largest beneficiary of the program, receiving up to US$7.9 billion in funding to support the construction of its factories in Ohio, Arizona and other regions in the United States. Under the agreement, Intel must maintain a majority stake in the plant if it spins it off into a new entity.

According to reports citing people familiar with the matter, the Trump administration asked TSMC to explore the idea of ​​taking over Intel factories. At the same time, a White House official told the media,The president is unlikely to support a deal involving a foreign entity operating an Intel factory.

In addition to the terms of the agreement, the Intel acquisition also faces operational complexities. Analysts say Intel's factories are primarily set up to produce Intel chips, and the company has only begun trying to produce chips for external customers in the past few years.

This means,Modifying Intel's factories to produce advanced chips the way TSMC has done would be a significant and costly engineering challenge.

Others point out that given the Trump administration's restrictive stance on immigration, other companies may be restricted from deploying engineers to the United States to oversee production.

Intel's decline began when it fell behind TSMC in advanced process technology and was therefore under attack from competitors that used TSMC's foundry chips.

Intel has been attracting interest from acquirers over the past year, and that interest has intensified since former CEO Pat Gelsinger stepped down in December.

In response to its woes, Intel has begun separating its chipmaking division from the rest of the company, which some analysts see as a precursor to a series of spinoffs. In addition, Intel has been advancing cost-cutting plans over the past few years, has divested many businesses, and is selling a stake in its programmable chip unit Altera.

According to previous reports by many media, Intel’s interim executive chairman Frank Yeary has been in discussions with potential acquirers and Trump administration officials, Yeary told people around him,His primary focus is maximizing value for Intel shareholders.