Intel May Sell 20% of Its TSMC Foundry Business – White House Eyeing Deal
Last few days Intel at the center of rumors about the sale shares of his factory business the industry's largest players. According to analysts, the company is considering cooperation with TSMC and Broadcom, to save their own inefficient factories and avoid serious financial problems.
Analysts at Baird and Cantor Fitzgerald believe that the deal between Intel and TSMC is almost inevitable. It is expected that TSMC will get 20% in the department Intel Foundry Services (IFS), offering in return financing or technology transfer... Simultaneously Broadcom and Qualcomm can invest in Intel by placing orders at its facilities.
In this case, The White House is keeping a close eye behind the situation and can actively push the deal to prevent crisis at the level of General Motors. The US is already investing billions through CHIPS Act, and the authorities don't want to see Intel as a Loss-Making GiantHowever, Bank of America experts warn that the separation process will be extremely complex, because the:
- Intel controls 70% of the market server and PC processors, which will require approval from regulators, including China.
- TSMC is already building factories in the US, what investing in Intel can do unreasonable.
- Broadcom's Debt Burden may prevent her from actively participating in the transaction.
Some analysts believe that Intel may be forced accept this deal under pressure American government, and negotiations are just a trial step before real agreements.
