(VOR News) – Intel’s competitors, Taiwan Semiconductor Manufacturing Co. and Broadcom, are reportedly in discussions regarding the possibility of merging, as indicated by an article published in the Wall Street Journal on Saturday.

This would result in the American chipmaking industry being divided in half. The article contained quotations from individuals who were cognisant of the matter.

According to a journal article, Broadcom has reportedly conducted a comprehensive investigation into Intel’s semiconductor design and marketing strategies. It has been reported that the business has considered the possibility of making a proposal with its advisors.

The startup will probably only proceed if it can partner with Intel’s production.

The source’s information suggests that TSMC, the world’s largest contract chipmaker, has independently investigated the potential acquisition of certain or all of Intel’s chip facilities. It is conceivable that this was accomplished through the collaboration of a group of investors or the efforts of a different organisation.

The Journal has reported that Broadcom and TSMC are not presently engaged in any collaborative efforts, and any discussions they have had in the past have been informal and preparatory in nature.

The knowledgeable source has reported that Frank Yeary, who is currently serving as executive chairman, has been the driving force behind negotiations with officials from the Trump administration and potential suitors. These individuals are concerned about the survival of a company that is considered to be crucial to the operation of the national security system.

The insider asserts that Yeary has conveyed to his closest associates that his primary objective is to enhance the value that Intel shareholders receive.

Intel, Broadcom, TSMC, and the White House were contacted but didn’t respond.

According to a White House official who spoke with Reuters on Friday, the administration of President Donald Trump may not provide support to a foreign business that owns semiconductor manufacturing operations in the United States.

This is in response to Bloomberg’s report, which indicated that TSMC was investigating the possibility of acquiring majority ownership of Intel’s factories at Trump’s request. This report was published immediately after Bloomberg’s announcement that TSMC was considering acquiring a majority interest in manufacturing.

Although the Trump administration encourages foreign companies to invest and expand in the United States, a White House official stated that it is “unlikely” that they would authorise a foreign corporation to oversee Intel’s factories.

This is despite the fact that the Trump administration encourages foreign firms to do so. It was recently reported by Bloomberg that members of Trump’s team met with officials from TSMC to investigate the feasibility of a transaction between the two companies.

The concept of merging the two enterprises into a single entity was enthusiastically received by the management team. This information was provided by an individual who has direct experience with the subject matter.

The United States’ initiative to manufacture processors that were required to be manufactured in the country yielded the greatest benefits for Intel. The administration of former President Joe Biden sponsored this initiative.

Intel will get $7.86 billion from the government in November.

According to the United States Department of Commerce. This particular company is one of the few chipmakers that concurrently develop and manufacture semiconductors.

Furthermore, Intel’s market capitalisation is over eight times that of TSMC. AMD (AMD.O), Intel’s primary competitor in the personal computer and server industries, and Nvidia (NVDA.O), the market leader in artificial intelligence processors, are both clients of the Taiwanese company.

In both of these markets, AMD is a formidable competitor to Intel. According to a recent article published by Reuters, Pat Gelsinger, the former CEO of who was terminated the previous year, was reported to have harboured high expectations for the company’s capabilities in artificial intelligence and manufacturing.

Regrettably, the chipmaker’s expectations were not met, resulting in the cancellation or loss of contracts.

Intel embarked on a capital-intensive initiative to enhance output the previous year under Gelsinger’s leadership. The company’s cash flow was impacted by this endeavour, which led to the termination of approximately fifteen percent of the workforce. As a result, Intel’s stock price experienced a sixty percent decline.

SOURCE: DN