According to Techspot , Intel Corporation is facing a scenario of being split into two companies as Broadcom and TSMC target separate business segments of the company. As Intel's board of directors searches for a new CEO, the results of these deals could significantly affect the company's long-term strategy.
If Intel were to split into two companies, it could lose its competitive advantage in a closed supply chain, creating an opportunity for rivals to consolidate their position in the semiconductor market.
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In another development, TSMC is exploring the possibility of taking over some or all of Intel’s factories. The company could lead an investment consortium or use another transaction structure to take control of Intel’s manufacturing operations. If the deal goes through, Intel would lose the closed supply chain that has been a core competitive advantage.
While Broadcom and TSMC are not working together, the fact that both companies are interested in Intel shows the decline of the American semiconductor giant. A breakup of Intel was once unlikely, but now it is more likely than ever.
Intel has taken steps to prepare for a possible spinoff of its manufacturing business. The company currently operates its factories as independent entities, taking orders from both internal and external customers, which would make it easier for Intel to transfer manufacturing if an acquisition were to occur.
The U.S. government is closely monitoring the situation given Intel’s importance to national security. Intel’s interim executive chairman, Frank Yeary, is said to be in discussions with both interested parties and Washington officials to find the best solution for shareholders.
TSMC wants to take over Intel's factory but will have difficulty adapting technology, and Intel risks losing its competitive advantage in chip manufacturing.
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However, if TSMC were to take over Intel’s plant, the deal would face several hurdles. A foreign company taking control of a key U.S. chip manufacturing facility would likely not be approved by the administration. Several sources said the Trump administration had asked TSMC to consider the option, but a White House official said the president was unlikely to support the deal.
In addition to political hurdles, TSMC also faces technical challenges. Converting Intel’s manufacturing technology to TSMC’s processes would be costly and time-consuming. Additionally, U.S. immigration policies could limit the ability of TSMC engineers to deploy to these plants.
Additionally, the Chips Act of 2022, which provides massive funding to Intel to boost domestic chip manufacturing, requires the company to retain majority control of its factories if there is any move to spin it off.
While the talks are still in the early stages, the developments represent a significant shift in Intel’s position in the semiconductor industry. If either deal goes through, the company could lose its vertically integrated model and instead split into two independent companies.
Source: https://thanhnien.vn/intel-co-the-bi-chia-tach-truoc-ap-luc-thau-tom-tu-broadcom-va-tsmc-185250218115618194.htm
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