Tech: TSMC has pitched a proposal to major U.S. chip designers—Nvidia, AMD, and Broadcom, with Qualcomm also being approached—to take part in a joint venture that would operate Intel’s foundry division. Under the plan, TSMC would manage the operations while holding no more than a 50% stake.
The discussions were initiated on March 12, 2025, with the announcement emerging from key financial centers in Singapore, New York, and Taipei. These early-stage talks come on the heels of a directive from the Trump administration, which has been urging TSMC to help revive Intel’s struggling manufacturing arm.
The proposal centres on TSMC leveraging its advanced chipmaking expertise to run Intel’s foundry operations, aiming to create a partnership model that includes multiple chip designers as investors. This comes at a time when TSMC recently announced a fresh $100 billion investment in the United States to build five new chip facilities.
Intel’s foundry division, which holds assets valued at $108 billion, has been under intense scrutiny following a staggering net loss of $18.8 billion in 2024.
The joint venture is seen as a strategic move to salvage Intel’s fortunes and boost American advanced manufacturing, though significant challenges remain due to differences in manufacturing processes between Intel and TSMC.
[Source Reuters]
