Intel Corp. shares soared by as much as 11% on Tuesday, driven by speculation that the iconic chipmaker could be split up in a blockbuster deal involving Taiwan Semiconductor Manufacturing Co. (TSMC) and Broadcom Inc. This surge marked Intel’s most significant single-day increase since October 2023, pushing its stock to $26.24 and solidifying an 18% gain year-to-date.
TSMC Eyes Intel’s U.S. Factories
According to Bloomberg News, TSMC has floated the idea of running Intel’s U.S. factories while holding a controlling stake in the venture. This bold move would capitalize on TSMC’s advanced manufacturing capabilities and bolster its position in the American semiconductor market. However, the potential deal faces geopolitical headwinds, as the White House recently indicated that it might oppose foreign control of Intel’s manufacturing facilities.
Broadcom’s Strategic Ambition
Meanwhile, Broadcom Inc. has reportedly engaged in informal discussions with advisers about acquiring Intel’s chip-design and marketing divisions, according to the Wall Street Journal. This move would further diversify Broadcom’s portfolio and enhance its presence in the semiconductor ecosystem. Notably, Broadcom previously considered pursuing Intel last year but refrained from initiating formal talks. Despite this, interest in the strategic acquisition remains high.
Intel’s Struggles and Leadership Shake-Up
Once a titan in the semiconductor industry, Intel has struggled to maintain its technological edge, losing significant market share to competitors. The company also missed the critical shift toward artificial intelligence accelerators, allowing Nvidia Corp. to dominate this burgeoning field. These setbacks culminated in Intel’s board ousting CEO Pat Gelsinger last year as his turnaround strategy failed to gain traction. The company is still on the lookout for new leadership to navigate its strategic crossroads.
Speculation Fuels Investor Optimism
The resurgence of Intel breakup rumors has reignited investor optimism, with analysts speculating on the potential value unlocked by separating the company’s factory operations from its product-development divisions. The concept of splitting Intel has been a topic of debate among investors and industry analysts for over a year, with even the company itself acknowledging that a breakup could be a viable path forward.
Geopolitical and Strategic Hurdles
Despite the buzz, significant hurdles remain. The proposed TSMC-Intel factory arrangement may face resistance from U.S. regulators wary of foreign ownership of critical semiconductor infrastructure. Furthermore, discussions between all parties are still in preliminary stages, with no formal agreements on the table.
Market Reaction and Competitive Landscape
Intel’s stock surge has outpaced its chip industry peers in 2025, driven by speculation around the potential deals. However, the competitive landscape remains fierce, with Nvidia leading in AI accelerators and other competitors like AMD maintaining strong market positions.
What’s Next for Intel?
The intrigue surrounding Intel’s future continues to captivate investors and industry watchers. As talks with TSMC and Broadcom remain at an early stage, all eyes are on Intel’s next strategic move. Will a breakup finally materialize, reshaping the semiconductor industry landscape? Or will geopolitical concerns and strategic challenges stall these high-stakes discussions?
