It was reported that Broadcom is considering acquiring the design division and TSMC is considering acquiring the manufacturing division for Intel, which is restructuring its management. If this move is realized, it could significantly change the balance of power in the semiconductor industry.
🟦 Broadcom and TSMC consider acquiring Intel split a reality?
US semiconductor giant Broadcom is reportedly considering acquiring Intel’s semiconductor design and marketing divisions. Intel has long been a world leader in semiconductor design for personal computers, but recently competition has intensified and it has been forced to liquidate its business.
On the other hand, TSMC (Taiwan Semiconductor Manufacturing) is said to be seeking to join Intel’s manufacturing division. This is thought to be due to TSMC’s involvement in the operation of Intel’s U.S. factory and the aim of building a more solid production base. This has opened up the possibility of partnering with external companies and acquiring them, and talk of a divestiture or divestiture like this one has emerged.
🟦 Why is Intel considering a divestiture?
Intel’s business environment has been tough for the past few years, and in August 2024, it cut about 15,000 jobs. In addition, semiconductor manufacturing requires huge investments, which make it difficult to operate on its own amid increasing competition. Intel had strengths as a company that was responsible for both manufacturing and design, but it was lagging behind the competition from semiconductor manufacturing companies such as TSMC and Samsung.
In addition, in the design field, the rise of competitors such as NVIDIA and AMD has made it difficult to maintain the overwhelming market share as before. Therefore, there is a possibility that the design department will be sold to a company like Broadcom and move to a more efficient business structure.
🟦 Summary
In this report, it was pointed out that Broadcom may acquire and participate in Intel’s design division and TSMC’s manufacturing division. If this happens, Intel will be a major change from its current integrated corporate structure and will impact the entire semiconductor industry.
It will be interesting to see how the negotiations will evolve in the future. We will continue to watch Intel’s choices and how the competitive structure of the semiconductor industry will change.
