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.

TSMC could address Mr. Trump’s demands by simply building more manufacturing capacity in the United States, said Stacy Rasgon, a semiconductor analyst at Bernstein Research. TSMC, which received up to $6.6 billion in grants from the CHIPS Act, is building three factories in Arizona and has the ability to expand there.

One solution being discussed is for Broadcom and TSMC to split Intel, with one part of the company focusing on design and another on production. Intel’s manufacturing division already has a degree of autonomy and reports its finances separately.