The Wall Street Journal reports that two semiconductor chip makers—Taiwan Semiconductor Manufacturing Co. (TSMC) and Broadcom—are each weighing the possibility of buying part of Intel, another competitor in the space. Both Intel and the Trump administration are apparently interested in making a deal. But depending on what happens, it could be an example of one recipient of corporate welfare acquiring another.
Intel was once a dominant force in personal computing—perhaps the dominant force, designing and building the majority of all microprocessors used in both personal and commercial applications. But its fortunes have shifted since the early 2000s, owing to increased competition and its ill-fated decision not to take Apple's 2007 offer to supply chips for the first iPhone.
Intel's stock lost over 60 percent of its value in 2024, making it the year's worst performer on the entire Nasdaq composite index, as competitors Nvidia and AMD soared. In November, the Dow Jones Industrial Average replaced Intel on its index with Nvidia, which Dow Jones officials felt was "more representative" of "the semiconductors industry."
