Intel May Split into Smaller Entities

Amid financial struggles, Intel (INTC) faces potential deals that could break up the company.

Taiwan Semiconductor (TSM) and Broadcom (AVGO) are reportedly considering acquiring parts of Intel's business. Broadcom targets Intel's design and marketing operations, while TSM eyes its chipmaking plants.

Possible Value Extraction

Intel shareholders may benefit from a breakup, with analysts estimating a potential value of $167 billion ($38.24 per share) or even $237 billion ($54.18 per share).

Challenges to a Deal

Regulatory approvals, antitrust concerns, and Intel's factory constraints pose obstacles to a deal. Additionally, the CHIPS Act funding requires Intel to retain majority ownership of its foundry.

Analyst Perspectives

Raymond James, Bank of America, and Bernstein analysts express concerns about regulatory hurdles. Bernstein analyst Stacy Rasgon suggests Broadcom as a potential acquirer for Intel's products business.

Recent Changes and Impact

Intel's former CEO Pat Gelsinger departed in December 2025, and the company named David Zinsner and Michelle Johnston Holthaus as interim co-CEOs. Intel's financial performance has declined, with Q4 sales and net earnings experiencing significant drops.

Implications for the US

Intel's potential breakup has implications for US technology competitiveness. Microsoft co-founder Bill Gates emphasizes the importance of developing a credible alternative to Taiwan Semiconductor and Samsung. The US government's $3 billion funding for Intel's chip manufacturing highlights the strategic significance of the industry.