TSMC to Take 20% Stake as Intel Seeks to Boost Manufacturing
Intel and Taiwan Semiconductor Manufacturing Co. (TSMC) have reached a preliminary agreement to establish a joint venture to operate Intel’s chipmaking facilities, according to a report by The Information. The deal, which is still in early stages, would see TSMC take a 20% stake in the new company.
Following the report, Intel’s stock surged nearly 5%, while U.S.-listed shares of TSMC declined about 6%. Neither company has provided an official comment on the deal.
The partnership comes amid efforts by the U.S. government to strengthen domestic semiconductor manufacturing and reduce reliance on foreign production. The Trump administration reportedly played a role in facilitating discussions between Intel and TSMC as part of its broader push to revitalize Intel’s position in the global chip industry.
Earlier this year, Reuters reported that TSMC had approached major U.S. chip designers, including Nvidia, Advanced Micro Devices (AMD), and Broadcom, about investing in a similar joint venture to operate Intel’s factories.
If finalized, the Intel-TSMC collaboration could help Intel regain its competitive edge in semiconductor production while allowing TSMC to expand its footprint in the U.S. The move also aligns with broader industry trends, as geopolitical tensions and supply chain challenges push companies to diversify manufacturing locations.
With Intel ramping up its foundry business and TSMC solidifying its position as a key global supplier, the joint venture could reshape the semiconductor landscape in the years to come.’
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