Seems huge value can be unlocked from this deal. Intel’s core CPU business is a cash cow, while the fab business, though losing money, is of critical importance to US chip self sufficiency. So it’s a no brainer that the sum of the parts value exceeds the combined value represented by current Intel stock.
Given current mgmt has not made it work, it could definitely be a plausible scenario that a breakup works.
Also news that TSMC may be investing in or taking over operations of Intel’s fab. This smells of “technology transfer” whereby TSMC will be building up the Intel fab business for the US in exchange for operating in the US (of course like with all technology transfer it probably will be implicit wink wink rather than explicit).
Stay tuned for more.
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