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(Reuters) - Intel rivals Taiwan Semiconductor Manufacturing Co 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:
PRODUCTS DIVISION
The division designs its chips and is one of the most accomplished historically but has faced fierce competition from Advanced Micro Devices in the personal computer and data-centers markets.
A shift in spending by big cloud companies toward 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 $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 telecom infrastructure and enterprise networks.
Revenue of $48.95 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.
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 chipmaking 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.
A decision to do so could generate a revenue windfall and endorsement for Intel's contract manufacturing business.
Advanced Micro Devices is also evaluating whether Intel's 18A manufacturing process, made available to other chipmakers 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 President Donald Trump. However, a White House official stated that the Trump administration might not support Intel's U.S. chip factories being operated by a foreign entity.