Intel is reportedly exploring a potential breakup as it seeks to unlock shareholder value, with Taiwan Semiconductor (TSMC) and Broadcom expressing interest in key divisions. While Broadcom is eyeing Intel’s chip design and marketing business, TSMC is considering acquiring or operating Intel’s manufacturing plants.
Breakup Speculation Gains Traction
Intel has faced financial struggles and declining market share, prompting talks about strategic restructuring. Reports from The Wall Street Journal and Bloomberg indicate that:
- Broadcom has held informal discussions about a potential bid for Intel’s chip design and marketing unit.
- TSMC has explored taking control of Intel’s US-based manufacturing plants to expand its semiconductor production footprint.
- Silver Lake Management is in exclusive negotiations to acquire a majority stake in Altera, Intel’s programmable chip unit.
Intel’s Market Valuation & Challenges
According to Evercore analyst Mark Lipacis, Intel’s current valuation sits at $167 billion ($38.24 per share) but could rise to $237 billion ($54.18 per share) under an optimistic restructuring scenario.
Despite a 16% stock surge to $27.39, marking its biggest one-day gain since 2020, Intel remains in a weakened state:
Stock down 65% over five years
Fourth-quarter sales fell 7% to $14.3 billion
Net earnings plummeted 76% year-over-year
Regulatory & Political Roadblocks
US government may block a foreign takeover of Intel due to its close ties to the Department of Defence.
CHIPS Act restrictions require Intel to retain a majority stake in its foundry business.
Regulatory approvals from multiple countries, including China, could delay any potential deals.
What’s Next for Intel?
With CEO Pat Gelsinger ousted, the interim leadership is exploring strategic options, including a breakup or major restructuring. Microsoft co-founder Bill Gates has remarked that Intel will need significant time and investment to compete with TSMC and Samsung in semiconductor manufacturing.
While no final deals have been made, Intel’s future is at a crossroads, with potential deals reshaping the semiconductor industry.
