Intel Israel fate uncertain amid sale talks with TSMC, Broadcom

Intel Frank Yery was in dramatic conversations with senior Trump administration officials because the evidence indicates that the chip maker is likely to be dismantled and sold.

According to “The New York Times”, Yeari, US Trade Minister Howard Lutenic and senior executives from TSMC (Taiwan semi -Mosul), met the sale of control control to the Taiwanese Chipmaker maker. “The Wall Street Journal” said that Intel can sell the production department to TSMC and its development and design department for the developer of the US chips, in a deal in which the Trump administration mediated.

If such a deal is to move forward, there will be more exciting repercussions for the Israeli industry. Intel currently has about 9,500 employees in Israel, half of them in the development centers in Haifa, Petah Tikva, Jerusalem and the rest in production factories in Kiryat Gat. The New York Times reports that even if the talks succeed with TSMC, it is not certain in any way that the Taiwanese company will want to buy Intel factories in Ireland and Israel, but it will only focus on its American activity.

Anxiety about Israel's plants that are closed or sold

Senior executives in the chips industry estimate that if Intel operations are already sold to TSMC, there are many options that will dictate the fate of Intel chip factories in Kiryat Gat, the largest “Fab 28” and the latest “FAB 38.” If TSMC is not interested in factories outside the United States, they will be forced to sell the factory to another company or close it.

In such a case, there is only one company capable of buying such a factory completely, namely Samsung in Korea, which, as mentioned earlier in “Globes”, was exploring the possibility of starting manufacturing operations in Israel before the war. The second option is to sell Intel factories to a company that will be created specifically for the purpose of sale, which will hold factories for several years as a transitional period. This would allow TSMC to move more, on the other hand, to get Intel factories in time and not to wait until their financial collapse continues.

In the third scenario, TSMC will adapt the factories according to the needs of its different customers. “The TSMC, along with a Broadcom, can take advantage of Intel factories without having to change production lines and replace machinery,” says Moshe Tanash, CEO and founder of the Nervous Chips Company. “Broadcom will be happy to add an Intel slice, which currently produces $ 40 billion annually, to its product portfolio. Therefore, some Intel factories can be adapted to TSMC equipment and technology, while others will remain as is the case in continuing to produce Intel processors that are currently dominating Computer Market.

TSMC is already working in Israel through its European branch, which is being managed by Amsterdam by senior executives such as the Director General in Europe, the Middle East and Africa Paul de Pot. TSMC sells manufacturing services in Taiwan to Israeli chips companies, and it can allow them to have a long -term manufacturing from Israel, or in factories in the United States, and increase the availability of manufacturing for startups that are forced to wait in a line behind giant companies.

However, the transfer of the Taiwanese administration to Kirit Gat means the existence of a larger cultural gap – the Taiwanese companies do not have development or manufacturing centers in Israel, and the gap between cultures creates great difficulty in the administration: while the Taiwanese administration is hierarchical and requires obedience, in, in Israel Horizontal management and challenge is estimated. Senior executives in the manufacturing system such as Danny Bin A M and Dan Doreon and Raida Massar were gave Israel a prominent position in the INTEL global manufacturing system, and it is not certain how much that will be preserved in the Taiwanese era.

“Broadcom will bring a different organizational culture”

If Broadcom ultimately completed the acquisition of the development department, INTEL development centers in the field of computer and server chips will join Broadcom's activity in Israel, which is mainly about communication key processors, server farms and communications providers. In the past, Broadcom has acquired companies in the field of fiber communications chips in Israel, but the market was seized by the Chinese Huawei.

Senior executives who know Broadcom well describe their organizational culture as the opposite of Intel. One of the sources said: “Hock Tan, CEO of Broadcom, is accurately calculated by the average revenue for each employee. There is no method. With an ineffective organizational culture, it has been extracted.

It was published by Globes, Israel Business News – En.globes.co.il – on February 17, 2025.

© Copy Publish Publisher Itonut (1983) Ltd. , 2025.