BUZZ-Intel jumps after report says Broadcom, TSMC eye deals to split chipmaker

Reuters
18 Feb
BUZZ-Intel jumps after report says Broadcom, TSMC eye deals to split chipmaker

Updates

** Chipmaker Intel's INTC.O shares jump 10.1% to $25.99

** Taiwan Semiconductor Manufacturing Co 2330.TW and Broadcom AVGO.O consider potential deals that would split INTC into two, the Wall Street Journal reported on Saturday

** AVGO falls 3% to $226.00, while U.S.-listed shares of TSMC TSM.N down 1.3% at $201.35

** Broadcom and TSMC are not working together and discussions are preliminary and largely informal, report says

** Bernstein says some sort of cross-talk between TSMC and AVGO is likely needed to get something done here

** Any potential INTC split could be time-consuming and complicated given extensive approval requirements from global regulators - BofA Securities

** INTC's strong brand and customer base could give Broadcom CPU capabilities, expanding AVGO's focus beyond networking, storage and accelerators - BofA

** Taking over INTC foundry for TSMC could be problematic due to low synergy, cultural differences, varying tool sets, competing programs, geopolitics among others - BofA

** Up to last close, INTC shares have fallen ~45% in the past 12 months

(Reporting by Ragini Mathur and Jaspreet Singh in Bengaluru)

((Ragini.Mathur@thomsonreuters.com))

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