The US government is pushing Taiwan Semiconductor Manufacturing Co. and Intel Corp. to establish a joint venture for advanced chip production on American soil, according to people familiar with the matter.
The proposed collaboration would see TSMC providing crucial engineering expertise to Intel’s 3-nanometer and 2-nanometer fabrication facilities, which could later be spun off into a jointly operated entity, the Wall Street Journal reported. The deal, if materialized, would mark a significant shift in the global semiconductor landscape.
The potential partnership emerges as Intel prepares to launch its 18A process technology for mass production in the latter half of 2025, with plans to manufacture its Panther Lake processors domestically rather than outsourcing to TSMC.
Baird analyst Tristan Gerra suggests the arrangement could provide Intel substantial financial relief, enabling the company to concentrate on chip design and platform solutions. The joint venture structure could also attract fabless semiconductor firms seeking geographically diverse manufacturing options.
The timing of these discussions coincides with mounting political pressure, as former President Donald Trump threatens increased tariffs on Taiwanese chips. This development aligns with Washington’s broader strategy to strengthen domestic semiconductor capabilities while maintaining technological sovereignty.
The semiconductor industry’s reaction to the potential deal remains mixed, though sources in the sector indicate the model could prove viable. If successful, the partnership would combine Intel’s manufacturing infrastructure with TSMC’s technical prowess, potentially accelerating US chip production capabilities.
