Intel rivals TSMC and Broadcom are reportedly exploring potential deals that could split the storied American chip giant.
Broadcom has examined Intel’s chip design and marketing unit, while TSMC has separately studied acquiring some or all of its chip plants, according to the Wall Street Journal.
Intel, which attracted interest from Qualcomm last year, has three main segments:
1. Products division
The division designs its chips and is one of the most accomplished historically but has faced fierce competition from AMD in the PC and data centre markets.
A shift in spending by big cloud companies towards AI chips made by Nvidia has also sapped demand.
Intel’s PC business is included in the client computing group and offers Core series chips, as well as its Atom processors. For the server market, the company has the Xeon series.
The company scrapped its 2024 forecast that it would sell more than US$500-million worth of Gaudi AI chips due to slower-than-expected adoption.
The division also offers software and hardware such as the Ethernet solutions that support telecommunications infrastructure and enterprise networks.
Revenue of $49-billion in 2024 was up 2.7% from a year earlier, but down 14% from 2022. Michelle Johnston Holthaus, interim co-CEO of Intel, heads the business.
2. Intel Foundry
Intel restructured manufacturing and product development into two divisions as part of efforts to build out its contract chip-making business and attract investment.
Intel Foundry offers custom chip-making services to both its products and external customers. It has 10 manufacturing sites, including six wafer fabrication and four assembly or test facilities, according to its website.
Nvidia and Broadcom are running manufacturing tests with Intel, Reuters reported on Monday.
Read: The people who might be called on to rescue Intel
A decision to do so could generate a revenue windfall and endorsement for Intel’s contract manufacturing business.
AMD is also evaluating whether Intel’s 18A manufacturing process, made available to other chip makers last year, meets its needs but it was unclear if it had sent test chips through the factory.
The foundry business had faced a setback in its turnaround effort after earlier tests with Broadcom failed.
Earlier this year, Bloomberg reported that TSMC was considering taking a controlling stake in Intel’s factories at the request of US President Donald Trump. However, a White House official stated that the Trump administration might not support Intel’s US chip factories being operated by a foreign entity.
Intel has delayed its $28-billion chip fab plant in Ohio and paused factory projects in Germany and Poland as it tightened its belt and prioritised key projects.
Read: Can anyone save Intel?
The business reported a $13.4-billion operating loss in 2024, wider than the $7-billion in losses a year earlier. Executives expect the chip-making business to achieve breakeven on an operating basis by about 2027.
Revenue was $17.5-billion, a $1.4-billion drop from a year earlier.
3. All others
The businesses that are included in this segment are Altera, Mobileye Global and the start-ups that support Intel’s initiatives.
Altera, which makes programmable chips that are widely used in cellphone towers, defence and other industrial applications, is Intel’s standalone business.
Buyout firm Silver Lake is in exclusive discussions to purchase a majority stake in Altera, a person familiar with the matter said last month.
The chip maker owns a majority stake in Mobileye Global and confirmed in 2024 that it would not divest its majority stake in the self-driving tech firm.
Revenue fell about 32% to $3.8-billion in 2024. — Jaspreet Singh and Priyanka G, (c) 2025 Reuters
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