Broadcom still interested in taking over Intel's chip development

Is Intel threatening to split into production and development? After TSMC, Broadcom is now being discussed again.

Intel's headquarters in Santa Clara, California.

(Image: Intel)

Feb 16, 2025 at 10:33 pm CET

2 min. read

By

Nico Ernst

The financially troubled former chip giant Intel continues to be a target for possible takeovers. Following reports of TSMC possibly acquiring a stake in the manufacturing division (Intel Foundry), – this is not the first time that – Broadcom has come into play. The company, which is also an Intel customer, is said to be interested in the rest, i.e. Intel's chip development and marketing.

This was reported by the Wall Street Journal, citing unnamed sources. However, Broadcom only wants to take a stake in Intel if another company takes over chip production. According to the Journal, Broadcom has not yet presented its plans to Intel and is not in talks with TSMC. There does not currently appear to be any cooperation between the two companies in a possible split-up of Intel, even if the rumors are now coming together.

US government concerned about possible foreign takeover

The WSJ also has news from Intel's own management circles. The interim chairman of Intel's board, Frank Yeary, is said to be in talks with Donald Trump's administration. They see a possible takeover by a foreign company as a threat to national security. Intel is one of the companies working on the US Department of Defense's secret "Secure Enclave Program". The company has also received billions in subsidies for this. Despite such concerns, the US administration is said to have asked TSMC to consider a stake in Intel's manufacturing division. Both companies are currently building new chip factories, mainly in the USA.

Intel has been in troubled waters for years, partly because the company has fallen behind TSMC in state-of-the-art manufacturing processes. The company is consistently in the red, has cut thousands of jobs and retired its CEO Pat Gelsinger at the beginning of December 2024. He had invested billions to establish Intel Foundry as a competitor to TSMC. Since his departure, there has been increasing speculation about a possible spin-off of the manufacturing division.