What Happened: ​​Broadcom has been analyzing a potential bid for Intel's chip design and marketing business, reported the Wall Street Journal, citing people familiar with the matter.

However, it seeks a partner to take over the company's manufacturing unit before formally making a move. 

Meanwhile, TSMC has studied acquiring Intel's chip plants, potentially through an investor consortium or another structured deal, the report noted, citing people familiar with the discussion.

Broadcom and TSMC are not working together, and talks remain preliminary and informal.

See Also: Intel ‘Will Be Fighting For Every Socket' In The Data Center Business, Says Co-CEO Michelle Holthaus As Competition From AMD, Nvidia Heats Up

Intel’s board is currently searching for a new CEO, with the company’s future direction hinging on the outcome of these potential deals.

Intel’s stock dropped 60% last year due to lagging in AI chip advancements. Its latest earnings report showed a third consecutive quarter of declining revenue, with a bleak outlook ahead.

Price Action: Intel's stock inched up 0.043% after hours to $23.61, following a 2.20% drop on Friday, closing at $23.60, per Benzinga Pro data. TSMC's stock dipped 0.055% after hours to $203.79. It had gained 1.03% during regular trading on Friday, closing at $203.90. Broadcom's stock slipped 0.18% after hours to $232.61. On Friday, it fell 1.17% to close at $233.04.

Image via Shutterstock

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.