Well, it seems like the Trump team is determined to bring back Intel's semiconductor glory, since the administration is now in talks with TSMC and Broadcom, hoping to reach a conclusion.
Intel's Foundry Business Might Witness A Massive Comeback, As Trump Team Is Determined To Put Team Blue Back At Its Feet
Intel hasn't been in the best of positions for several quarters because the company hasn't met revenue expectations, and its foundry business brought in massive disappointment. Things started to get more tense once Team Blue's former CEO Pat Gelsinger stepped down, and talks about a business sell-off began to capture the whole market. However, things are looking to take a massive shift in favor of Intel, as according to WSJ, TSMC and Broadcom are interested in acquiring Intel, but with a business split-off, which we'll discuss next.
A key priority of the Trump administration right now is to bring semiconductor production back to the US. Instead of relying on foreign companies like TSMC, they are determined to get Intel Foundry back on its feet. It was previously reported that the US is urging TSMC to collaborate with Intel, whether that includes transferring technology to Team Blue or even taking control of its facilities to ensure a more effective output.
However, it seems like TSMC has other plans, as the report from WSJ says that both TSMC and Broadcom are interested in acquiring elements of Intel's business. Broadcom has been eyeing Intel's chip design and marketing business for a while now, and the firm is looking to make a bid, given that Intel has managed to find a stakeholder for its manufacturing business.
Similarly, TSMC has set its sights on taking control of Intel's chip plants as part of an "investor consortium" that would likely include other parties as well. It is claimed that Frank Yeary, Intel's interim executive chairman, is leading the talks, and his key focus is "ensuring maximum profit for Intel shareholders" without disregarding Intel's history and how the IFS has evolved over the past few years.
While the TSMC-Broadcom deal might seem like something that would benefit the "Made In USA" narrative, it is unlikely that Trump would support such a deal, given that he is against handing over businesses to foreign entities. Intel's future has evolved into a matter of "national security" for the US government, so a business split-off certainly won't comply with Trump's way of dealing with the fiasco. However, we are looking at a productive outcome for Intel, and since TSMC is determined to escape Trump's tariffs, a positive conclusion will be reached.
The hope for how Intel Foundry will turn out is definitely bright, and given that firm's progress with the 18A process, it won't be wrong to say that the IFS could make a huge comeback, especially if TSMC decides to create a collaborative partnership. The key question here is whether Intel could meet the expectations of the Trump administration.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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