TSMC has approached major U.S. chip designers including Nvidia, AMD, Broadcom, and Qualcomm about joining a joint venture to operate Intel’s factories, according to sources familiar with the discussions, Reuters reported.
The Taiwanese semiconductor giant would run Intel’s foundry division while maintaining less than 50% ownership, preserving partial American control of the troubled chipmaker. These early-stage talks come after the Trump administration requested TSMC’s assistance in revitalizing the struggling U.S. tech icon.
Any deal would require White House approval, as the administration opposes full foreign ownership of Intel or its manufacturing arm. The proposal aims to stabilize Intel, whose shares have plummeted over 50% in the past year after posting an $18.8 billion loss in 2024—its first annual loss since 1986.
Under the proposed structure, TSMC wants potential investors to also become customers of Intel’s advanced manufacturing, with tests already underway using Intel’s cutting-edge 18A production techniques.
The plan faces significant challenges, as the companies use vastly different manufacturing processes and tooling. Sources indicate internal disagreement at Intel, with board members supporting negotiations while some executives strongly oppose any deal.
Intel has rebuffed discussions about selling its chip design division separately from manufacturing operations, and Qualcomm has reportedly withdrawn from earlier talks about acquiring parts of the company.
