Trump Administration’s Role in Revitalizing Intel’s Foundry Business: TSMC and Broadcom Join the Competitive Landscape

It appears that the Trump administration is actively working to reinvigorate Intel’s position in the semiconductor industry. Recent discussions with major players such as TSMC and Broadcom indicate a potential shift in strategy that could significantly impact Intel’s future.

The Revival of Intel’s Foundry Business: Aiming for Semiconductor Supremacy

Intel has faced numerous challenges in recent quarters, failing to meet revenue targets and experiencing setbacks in its foundry business. The situation intensified following the exit of former CEO Pat Gelsinger, fueling speculation about possible divestitures. However, a new opportunity may be on the horizon as reported by The Wall Street Journal, indicating that both TSMC and Broadcom are exploring the possibility of acquiring parts of Intel, particularly through a business restructure.

The Trump administration is prioritizing the revival of domestic semiconductor production, seeking to bolster Intel’s foundry operations rather than relying heavily on foreign entities such as TSMC. There are ongoing discussions aimed at encouraging TSMC to collaborate with Intel, which could involve technology transfers or even direct control over certain Intel facilities to optimize production capabilities.

Intel's Semiconductor Production — An Intel factory employee holds a wafer featuring advanced 3D-stacked Foveros technology at Intel’s facility in Hillsboro, Oregon. In February 2024, Intel introduced its Foundry service, heralded as the first systems foundry designed for the AI era, promising advancements in technology, resilience, and sustainability.(Credit: Intel Corporation)

Despite this, TSMC seems to have its own ambitions concerning Intel’s operations. Reports suggest that both TSMC and Broadcom are keenly interested in acquiring various business segments from Intel. Broadcom, in particular, has been eyeing Intel’s chip design and marketing arm for some time, considering an offer as Intel attracts potential investors for its manufacturing operations.

Meanwhile, TSMC is interested in Intel’s manufacturing facilities, potentially as part of a broader “investor consortium”that may include other investment groups. Frank Yeary, Intel’s interim executive chairman, is at the forefront of these negotiations, aiming to optimize shareholder returns while respecting Intel’s legacy and the evolution of its Integrated Device Manufacturing (IDM) model.

While the potential TSMC and Broadcom arrangement could align with the “Made in USA”narrative, it is questionable whether the Trump administration would endorse such a deal due to its stance on transferring businesses to foreign companies. The ongoing developments regarding Intel have escalated to a matter of national security for the U. S.government, which could complicate any plans for a split-off from Intel.

The outlook for Intel Foundry is cautiously optimistic. With advancements in the 18A process, there is a realistic possibility for Intel to reclaim its standing in the industry—particularly if TSMC commits to a collaborative relationship. The pressing question remains: can Intel deliver on the expectations set forth by the current administration?

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