Intel has biggest rally since 2020 on break-up speculation
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The talk is that the iconic chipmaker could be broken up in a deal involving TSMC and Broadcom.
PHOTO: REUTERS
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Los Angeles – Intel shares soared 16 per cent on speculation that the iconic chipmaker could be broken up in a deal involving Taiwan Semiconductor Manufacturing Co (TSMC) and Broadcom.
TSMC has discussed the idea of operating Intel’s US factories and owning a controlling stake in the venture, Bloomberg News reported last week.
Broadcom, meanwhile, has held informal talks with advisers about making a bid for Intel’s chip design and marketing business, the Wall Street Journal said.
Separately, Bloomberg reported that Silver Lake Management is in exclusive talks to acquire a majority stake in Altera, Intel’s programmable chip unit.
Though the discussions have reached an advanced stage, the exact size of the stake has not been determined, according to people familiar with the talks.
The reports gave fresh life to the idea of an Intel break-up – a topic of conjecture for investors and analysts since 2024.
Even the company itself has said that it is an open question whether Intel might eventually split up its factory and product development divisions.
Its shares climbed to US$27.39 in New York trading on Feb 18, marking the biggest single-day increase since March 2020. The stock was already up 18 per cent in 2025 through the end of last week, fuelled by the deal speculation.
Intel, once dominant in the chip industry, has struggled to regain its technological edge and lost market share to rivals in recent years.
It also missed the shift to artificial intelligence accelerators
Intel’s board ousted chief executive Pat Gelsinger in 2024 after his comeback plan was slow to gain momentum, and the company has been searching for a new leader.
Bloomberg reported in 2024 that Broadcom assessed whether to pursue an Intel deal but did not move ahead with talks.
Advisers continued to pitch ideas to Broadcom, people familiar with the matter said at the time.
The TSMC factory plan might help clear the way for a deal to buy the product development unit, but neither scenario has advanced past the early stages.
Though Trump administration officials raised the idea of the TSMC deal in recent meetings, a White House representative said last week that the President would be unlikely to support a foreign entity operating Intel’s factories. BLOOMBERG
