In a bold move that could reshape the global semiconductor landscape, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, has approached several U.S.-based tech giants about forming a joint venture to operate Intel’s foundry division. According to multiple insiders familiar with the discussions, Nvidia, Advanced Micro Devices (AMD), Broadcom, and Qualcomm have all been pitched on taking stakes in the proposed partnership.
Under the terms of the proposal, TSMC would assume operational control of Intel’s foundry business, which specializes in producing custom chips tailored to customer specifications. However, the Taiwanese firm would hold no more than a 50% stake in the venture, ensuring compliance with U.S. ownership restrictions. The remaining equity would be distributed among participating partners, who are expected to include some of the biggest names in the semiconductor industry.
This initiative reportedly stems from pressure by the Trump administration, which has urged TSMC to help revitalize Intel—a cornerstone of American advanced manufacturing. While the talks remain preliminary, sources indicate that any finalized agreement would require explicit approval from Washington, underscoring the geopolitical significance of the deal.
The push to salvage Intel comes amid mounting challenges for the once-dominant U.S. chipmaker. Over the past year, Intel’s stock price plummeted by over 50%, culminating in a staggering $18.8 billion net loss for 2024—the company’s first since 1986. Much of this decline can be attributed to write-downs tied to its foundry assets, which carry a book value exceeding $108 billion. Meanwhile, rivals like TSMC and Samsung have surged ahead in cutting-edge fabrication technologies, leaving Intel struggling to catch up.
Efforts to revive Intel gained momentum under former CEO Pat Gelsinger, who championed the expansion of the company’s contract manufacturing capabilities. However, internal divisions within Intel’s leadership led to Gelsinger’s ouster in December, stalling key projects such as the development of next-generation artificial intelligence chips. Despite these setbacks, Intel continues to explore strategic partnerships aimed at bolstering its competitive position.
Several high-profile players have shown interest in joining forces with TSMC and Intel. Nvidia, AMD, and Broadcom have reportedly conducted trials using Intel’s latest 18A manufacturing process—a technology touted as rivaling even TSMC’s cutting-edge 2-nanometer node. Sources close to the matter revealed that during negotiations earlier this year, Intel executives claimed their 18A offering outperformed TSMC’s equivalent process, though skepticism remains regarding compatibility issues between the two firms’ vastly different production systems.
Qualcomm, another major player in the semiconductor space, had previously engaged in talks to acquire portions of Intel but ultimately withdrew due to concerns about separating the company’s design unit from its foundry operations. Instead, TSMC is now seeking to align potential investors with Intel’s existing customer base, ensuring long-term demand for the joint venture’s output.
Collaborating with Intel poses significant hurdles for TSMC, given the stark contrasts in their respective manufacturing methodologies. Integrating tools, chemicals, and processes across factories will likely prove both costly and time-consuming. Yet, precedents exist: Intel has successfully partnered with other companies, including Taiwan’s United Microelectronics Corporation (UMC) and Israel’s Tower Semiconductor, raising hopes that a similar arrangement might work here.
For President Trump, whose administration has prioritized boosting domestic manufacturing, the success of this venture holds symbolic importance. By leveraging TSMC’s expertise while preserving partial U.S. ownership of Intel’s facilities, the White House aims to reassert America’s dominance in the semiconductor sector—a critical component of national security and economic competitiveness.
While the outcome of these discussions remains uncertain, early signs suggest optimism among stakeholders. On Wednesday, Intel shares surged 6% following reports of the ongoing talks, while Nvidia, AMD, Broadcom, and Qualcomm posted gains ranging from 1.18% to 6.64%. In Taiwan, TSMC closed nearly 2% higher, reflecting investor confidence in the potential collaboration.
Should the joint venture materialize, it could mark a turning point not only for Intel but also for the broader semiconductor ecosystem. By bridging East-West technological divides and fostering unprecedented levels of cooperation, the alliance may pave the way for innovations that benefit industries worldwide. Nevertheless, achieving seamless integration and overcoming entrenched rivalries will require careful navigation and unwavering commitment from all parties involved.
