Intel (INTC) is at a critical crossroads as speculation mounts over a potential corporate split. Reports suggest that semiconductor giants Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom (AVGO) are exploring deals that could reshape Intel’s business, unlocking substantial value for shareholders.
Potential Breakup Scenarios
According to sources cited by The Wall Street Journal, Broadcom is interested in acquiring Intel’s chip design and marketing division, while TSMC is evaluating control over some or all of Intel’s chip manufacturing facilities. These moves could lead to a major restructuring of the iconic U.S. chipmaker.
Market analysts believe such a split could significantly enhance Intel’s valuation. Evercore analyst Mark Lipacis estimates Intel’s current worth at $167 billion, or $38.24 per share—far above its recent closing price of $23.60. A more optimistic valuation places the company at $237 billion, or $54.18 per share, assuming stronger financial performance from its separate business units. 
Challenges in Executing a Deal
Despite the potential benefits, a breakup would not be straightforward. Regulatory hurdles, particularly in the U.S. and China, could complicate any deal structure. Intel’s foundry business, which reported a 76% operating loss in 2024, also raises concerns about its ability to compete efficiently with Taiwan Semiconductor, which boasts a 45% operating margin.
Furthermore, the CHIPS Act—which provided Intel with $3 billion in government funding—requires the company to retain majority ownership of its foundry operations. Bank of America analyst Vivek Arya noted that this stipulation could limit Intel’s ability to sell off key manufacturing assets. Additionally, a foreign entity gaining control over Intel’s chipmaking division might face scrutiny from U.S. policymakers, given the company’s deep ties to defense contracts.
Leadership Uncertainty and Investor Confidence
Intel’s leadership transition adds another layer of uncertainty. The company has been operating under interim co-CEOs David Zinsner and Michelle Johnston Holthaus following the departure of CEO Pat Gelsinger in December. Gelsinger spearheaded Intel’s turnaround strategy, cutting jobs, securing government subsidies, and investing in AI chip development to rival Nvidia (NVDA) and AMD (AMD).
Industry insiders suggest Intel may recruit an external executive to take the helm. Whoever assumes the role will face pressure to regain investor trust, stabilize financial performance, and determine the fate of Intel’s foundry business.
The Broader Impact on the U.S. Tech Industry
Intel’s struggles are more than just a corporate matter—they have significant implications for the U.S. technology sector. Microsoft co-founder Bill Gates highlighted Intel’s importance in semiconductor manufacturing, stating that a strong U.S. chip industry is essential to reducing reliance on foreign manufacturers like TSMC and Samsung.
While Intel’s future remains uncertain, a breakup could offer a path to renewed growth and shareholder value. Whether the company takes that route—or navigates a different turnaround strategy—will be closely watched by investors, policymakers, and the broader tech industry.
