TAIPEI (Taiwan News) — Industry sources suggest TSMC and Broadcom are exploring plans that could lead to a breakup of US chipmaker Intel, The Wall Street Journal reported on Saturday.

According to the report, TSMC has examined the possibility of taking control of some or all of Intel’s fabs, potentially through an investor consortium or another financial structure, per CNA. Intel’s foundry business has struggled to compete with the Taiwan-based chipmaker, recording a US$13.4 billion (NT$428 billion) loss in 2024, per Investopedia.

Intel also faces mounting pressure from rival AMD in the CPU market, and a potential split would align with the industry trend of companies specializing in either chip manufacturing or design, the report said.

Meanwhile, separate reports indicate that TSMC’s third Arizona plant could be operational by June, but the company declined to comment on market rumors when asked on Tuesday, per CNA.

Broadcom, which specializes in AI chip design, has reportedly been evaluating Intel’s chip design and marketing business. Sources said the company has consulted advisors on a potential bid but is unlikely to proceed unless it finds a partner willing to take on Intel’s manufacturing operations.

Talks remain informal, and none of the companies involved have provided official statements on the matter, the report said.

Intel has struggled in recent years to keep pace with the AI boom and execute a successful turnaround, leading to the ouster of former CEO Pat Gelsinger in 2024, per Investopedia.