A new chipmaking effort by two electronics manufacturing powerhouses may be in the making. According to a report published by The Information last week—and widely covered by a range of media outlets—Intel and Taiwan Semiconductor Manufacturing Co. (TSMC) have been working on a preliminary agreement to form a joint venture to operate the U.S. chipmaker’s factories.
Citing the report, TechRepublic says TSMC, the world’s largest contract chipmaker, will take a 20% stake in the joint venture by contributing chipmaking expertise and staff training to Intel. “TSMC will hold a 20% stake in the joint venture, contributing not cash, but value through sharing its chipmaking practices and training Intel staff,” the publication reports.
It goes on to say that rumors of a possible takeover of Intel emerged in February, with TSMC and Broadcom considering splitting the U.S. company’s manufacturing and design arms between them. “The following month, TSMC reportedly offered a share in its proposed acquisition of the chip foundries to NVIDIA and AMD, as well as Broadcom,” TechRepublic explains.
Supporting the Cause
The publication also says that President Trump supports TSMC’s involvement with Intel, and that he “encouraged TSMC to assist in pulling Intel out of its slump with a joint venture” and is keen on reviving the former U.S. manufacturing icon while strengthening domestic production.
In “TSMC Just Made a Bold Move That Could Save Intel,” Yahoo! Finance positions the prospective alliance as a “lifeline coming from an unlikely partner,” and says TSMC is stepping in to co-run Intel’s chip factories in exchange for the 20% stake in the new venture.
“The deal, still in its early stages, follows months of pressure from the White House to get the two rivals on the same page,” Yahoo! Finance states. “If it moves forward, this could mark a major turning point not just for Intel, but for the U.S. semiconductor industry's push to regain relevance in the global chip race.”
TSMC isn't just doing Intel a favor, the publication adds, it’s doubling down on its U.S. expansion. “The Taiwanese giant recently unveiled a $100 billion plan to build five new fabs in the U.S., and this Intel JV would give it even deeper roots,” it adds. “If this deal locks in, and if Intel can finally start shipping on time with TSMC at the helm, we may be looking at the start of one of the more surprising tech turnarounds of the decade.”
And in Other News…
About a week after The Information unveiled the details of the new TSMC-Intel partnership, Reuters reported that TSMC was threatened with a tax of up to 100% if it didn’t build new plants in the U.S.
“Speaking at a Republican National Congressional Committee event,” it says, “Trump criticized former President Joe Biden’s administration for providing a $6.6 billion grant to TSMC’s U.S. unit for semiconductor production in Phoenix, Arizona, saying semiconductor companies do not need the money.”
