Broadcom Interested in Buying Part of Intel After Spinoff

Intel’s management’s interaction with TSMC regarding possible cooperation in the field of contract chip manufacturing became known yesterday, and American officials are already involved in the negotiations, but the rest of the business of the first of the companies is attracted by Broadcom, as reported by The Wall Street Journal.

Image source: Intel, Adobe Stock

Sources note that Broadcom is eyeing the part of Intel’s business that is related to the development and sale of semiconductor components. The potential buyer has already hired financial consultants, but Broadcom has not yet made any formal proposals to Intel on this matter. An important condition for the promotion of this initiative is the readiness of third-party investors such as TSMC to gain control over Intel’s production facilities. If this does not happen, Broadcom may not even show its initiative. What is characteristic is that TSMC and Broadcom do not coordinate their actions in this situation and remain independent.

There is a high probability that Broadcom will abandon its plans, since this is not the first time that rumors about this company’s interest in Intel assets have emerged since the start of the latter’s restructuring. Moreover, Broadcom has an unpleasant experience of negotiations with Donald Trump, since it was he who ultimately blocked the so-called “deal of the century” in 2018, which implied the purchase of Qualcomm by Broadcom for $103 billion. As has become tradition in recent years, the refusal was motivated by national security considerations, although Broadcom even moved its headquarters from Singapore to this country in order to comply with the requirements of the US authorities. It is difficult to say whether Broadcom will succeed in the context of its attempt to buy Intel.