First TSMC, Now Broadcom? Intel Is Officially Becoming Big Techs Garage Sale of the Decade…

Investors: Lord, please shield us from another Paramount/Skydance dumpster fire…

Markets: Hold my Big Tech beer… 

So it’s become blatantly obvious that Intel is now America's corporate garage sale—and as of right now, neighbors are circling to see if there’s anything worth grabbing before the rain ruins it all. 

(Source: Giphy) 

In short (and following up on last week's article on the subject), Broadcom and TSMC are both sniffing around pieces of Intel. Meaning, while the market lost its collective mind over TSMC foaming at the mouth—Broadcom has now entered the chat to see what it can get its dirty hands on. The reason? Well we know that TSMC is considering grabbing its U.S.-based manufacturing plants, but Broadcom? Well, they’re officially eyeing Intel's chip design magic.  Meaning if this sounds like a total dismemberment in the making, that’s because it is. 

Oh and just to make things even more chaotic, while the initial idea came from Donnie & the Bunch themselves—the White House has reportedly raised concerns about a foreign company taking control of Intel’s U.S. chipmaking facilities, because, well, letting the world’s most important semiconductor factories fall into Taiwanese hands might not look great from a national security standpoint.

(Source: Wall Street Journal) 

Again, this is the same U.S. government that’s been throwing billions at Intel to onshore semiconductor manufacturing. So if they suddenly let Taiwan’s TSMC swoop in and take over, it would be one hell of a plot twist.

But, but, but… if Intel actually goes through with this, it would essentially be cutting itself in half—becoming more like a design-focused player like AMD, while outsourcing manufacturing to third parties. Naturally, Broadcom will keep Intels brain alive (read: chip designs), but under new management, while TSMC will get the factories (because Intel clearly doesn’t know what to do with them). And finally, Intel shareholders presumably will get a pile of cash and a company that looks like the Intel of old. Now of course, as I mentioned in the last article—these discussions are all early-stage, and nothing is set in stone. So as of right now, where does that leave us? 

(Source: Reuters) 

Well, the White House has made their intentions clear. Which means, they probably won’t have a fit over what Broadcom wants—but when it comes to TSMC, the most likely scenario is that TSMC doesn’t get a controlling stake but could be allowed to take a minority position—maybe as part of a U.S.-led consortium. 

A U.S.-led what? Glad you asked. Basically, TSMC could still buy a stake and provide technical expertise, but the U.S. government would ensure that control stays domestic. Naturally, this would give Intel some much-needed cash relief while still keeping its fabs running—hopefully better than before.

(Source: Giphy) 

But then again, Intel could just do nothing and refuse to do anything (which has been their expertise over the last decade). However, given that Intel’s stock has been taken behind the barn and shot, all with investors having little patience for another “Gelsinger” like turnaround story that holds about as much weight as Elon’s robotaxi claims—this would definitely be the least attractive option. 

My take on the matter? Well it’s above my paygrade, but if I was a betting man (which I’m not… or am I?) Broadcom ends up getting what it wants, TSMC gets partial access, the U.S. government keeps Intel’s fabs in American hands in an effort to avoid a geopolitical meltdown, aaaaand, Intel gets to stop hemorrhaging cash trying to do everything itself. The end. 

(Source: Giphy) 

Of course, this wouldn’t be a clean break, but it would keep everyone (mostly) happy while preventing Intel from fully collapsing. So yeah, it’s going to be one hell of a party either way, and it’ll definitely be entertaining in the process. Which is why, if you’re looking to make a bag or two on this deal, then make sure you keep your eyes on this story and place your bets accordingly. As always, stay safe and stay frosty, friends! Until next time…

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Stocks.News holds positions in Intel as mentioned in the article.