Intel stock surges 10% because TSMC and Broadcom both might buy a piece of it

                Intel stock surges 10% because TSMC and Broadcom both might buy a piece of it

Intel (INTC) stock was rising sharply on Tuesday morning as investors weighed the benefits of reported plans that could see rivals acquire parts of its business.

One plan could see Taiwan Semiconductor Manufacturing Company, which is already responsible for about 90% of the world’s advanced ,semiconductors, acquire Intel’s manufacturing business, The New York Times reported. It could also take a majority stake in the business alongside a group of private equity and tech companies. 

That idea has been pushed by President Donald Trump’s administration and Howard Lutnick, his nominee to be Commerce Secretary. Frank Yeary, Intel’s interim executive chair, has met with both TSMC (TSM) and Trump administration officials about the deal, The Times reported.

While the Trump administration asked TSMC to explore the idea, the White House is unlikely to support a deal that would let a foreign entity operate Intel’s factories, the Wall Street Journal reported.

Broadcom (AVGO) has also been examining Intel’s chip design and manufacturing business, The Journal reported, citing unnamed sources familiar with the matter. The deal, which Broadcom executives have only informally discussed, would hinge on finding a partner to take over Intel’s manufacturing business, The Journal reported. Nothing has been submitted to Intel yet.

Intel stock has been on a tear over the past week. The stock notched its biggest weekly gain since 2000 last Friday as the US signaled support for domestic chipmaking and reports surfaced that the US government was working with TSMC to support Intel's turnaround efforts.