Broadcom, TSMC eye possible Intel deals to split storied chipmaker: Report

Intel's rivals Taiwan Semiconductor Manufacturing Co and Broadcom are each eyeing potential deals that would break the U.S. chipmaking icon in two, the Wall Street Journal reported on Saturday, citing people familiar with the matter.

Broadcom has been closely examining Intel's chip design and marketing business, the Journal reported, adding that the company had discussed a potential bid with its advisers but would likely only proceed if it found a partner for Intel's manufacturing business.

TSMC, the world's biggest contract chipmaker, has separately studied controlling some or all of Intel's chip plants, potentially as part of an investor consortium or other structure, the report said.

Broadcom and TSMC are not working together, and all of the talks so far are preliminary and largely informal, the Journal added.

Intel's interim executive chairman, Frank Yeary, has been leading the discussions with possible suitors and Trump administration officials, who are concerned about the fate of a company seen as critical to national security, the report said.

Yeary has been telling individuals close to him that he is most focused on maximizing value for Intel shareholders, the report added.

Intel, Broadcom, TSMC and the White House did not immediately respond to Reuters' requests for comment.

A White House official told Reuters on Friday that President Donald Trump's administration might not support Intel's U.S. chip factories being operated by a foreign entity after Bloomberg reported that TSMC was considering taking a controlling stake in Intel's factories at Trump's request.

The White House official said the Trump administration supported foreign companies investing and building in the U.S. but was "unlikely" to support a foreign firm operating Intel's factories.

Bloomberg reported that Trump's team raised the idea of a deal between the two firms in recent meetings with officials from TSMC who were receptive, citing a person familiar with the matter.