Broadcom Weighs Deal For Some Of Intel’s Businesses

Broadcom is reportedly exploring a deal for Intel’s chip design and marketing divisions, Andrew Nusca wrote for Fortune’s Data Sheet.

Broadcom would need to find a partner for Intel’s manufacturing business, known as its foundry. I Photo: Broadcom Facebook

The Silicon Valley chipmaker—headquartered just 14 miles from its neighbor Intel—has “informally discussed” making a bid for these businesses, according to a new Wall Street Journal report.

One potential obstacle? Broadcom would need to find a partner for Intel’s manufacturing business, known as its foundry.

That partner could very well be TSMC. The world’s largest “pure play” chip manufacturer has reportedly considered taking over some or all of Intel’s chip-making facilities, though not in collaboration with Broadcom, the Journal notes.

While Intel has been working to spin off divisions such as its venture arm, Intel Capital, and Altera, which makes programmable chips, its foundry—responsible for billions of dollars in losses over the past two years—has proven to be a much tougher sell.

The company has sought federal assistance to navigate its challenges, benefiting from billions in CHIPS Act funding from the Biden administration.

Additionally, it has reportedly engaged with the Trump administration, particularly Howard Lutnick, Trump’s nominee for commerce secretary, to facilitate a deal with Taiwan’s TSMC, which would require U.S. government approval.