Thought Leadership
Intel could possibly be split up. As the Wall Street Journal reports, citing insiders, both the Taiwanese contract manufacturer TSMC and the US group Broadcom are showing interest in various business areas of the ailing chip giant.
According to the US business newspaper, Broadcom is primarily examining a takeover of Intel’s lucrative chip design and marketing business. However, the Group would probably only approach such a deal in partnership with an interested party for the manufacturing division.
According to the report, TSMC, the global market leader in the contract manufacturing of semiconductors, has its sights set on taking control of parts or all of Intel’s manufacturing division. One possible structure could be an investor consortium led by TSMC.
Political dimension
The talks are still at an early stage and have so far been largely informal. Broadcom and TSMC are also not working together. Intel interim CEO Frank Yeary, who is leading the negotiations, faces the challenge of reconciling the interests of shareholders with the national security interests of the USA.
The US government is critical of possible control of Intel factories by foreign companies. A White House spokesperson told Reuters that although foreign investment in the USA is supported, the operation of Intel factories by non-American companies is “unlikely”.
Crisis after failed major projects
Intel is in a difficult phase following the failure of ambitious production projects under former CEO Pat Gelsinger. The share price collapsed by around 60 percent last year. Despite billions in government subsidies, the company had to lay off around 15 percent of its workforce.
Official statements from the companies involved are not yet available. Further developments are likely to depend largely on the attitude of the US government, which classifies Intel as a strategically important company for national security.
