Broadcom, surge in Intel stocks in TSMC report explores trading to split Chipmaker

Intel (INTC) Shares jumped 13% on Tuesday.avgo) and TSMC (TSM) We are investigating potential transactions that divide potential transactions with chip makers into two.

The Wall Street Journal reported late Saturday Broadcom (avgo)) We are considering bidding in Intel’s product businessdesign semiconductors for computers and servers. The journal cited people familiar with the issue, said TSMC is considering managing some or all of Intel’s factories as potentially part of the investor consortium. The company has not submitted transactions with Intel, and the consultations are preliminary and informal, the journal writes.

Broadcom shares fell more than 4% on Tuesday, while US listed TSMC shares fell less than 1%.

Intel stocks were in tears last week. stock It has won its biggest weekly profit since 2000 Last Friday, the US signaled support for domestic chipmaking and reported that the US government is working with TSMC to support Intel’s turnaround efforts.

Intel’s manufacturing industry primarily manufactures chips for itself (Intel’s product business), but in 2022, under the leadership of then CEO Pat Gelsinger, it began to take on castings, or external customers. . Gelsinger was pushing to launch a competitive casting business with Taiwan’s TSMC in order to correct Intel’s struggled manufacturing division, which had been struggling with set-ups since the mid-2010s.

Turnaround efforts are not successful To date, Intel’s manufacturing has been struggling to compete with external customers and continues to bleed cash. Intel’s revenue has disappointed investors throughout 2024, with stock prices falling by around 60% last year. Gelsinger was expelled by Intel’s board of directors In December. The company is on an acquisition target, and interest from Broadcom and TSMC continues to report Potential acquisitions by Qualcomm (QCOM),, arm (arm), and Apollo last year.

Wall Street analysts support Intel splitting its business into two. Raymond James analyst Srini Pajri wrote in a note to investors on Monday:

Intel Last year, they announced plans to establish an independent subsidiary for their casting business.separating its finances and operations from the product division. Analysts viewed the move as paving the way for the company to potentially splitting; Intel’s US Chips Act limits the ability to sell manufacturing industry completely.

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