TSMC has picked up US chip designers Nvidia, advanced micro device and broadcom about taking bets in a joint venture operating Intel’s factories, according to four sources familiar with the case.
Under the proposal, Taiwanese chipmaking will run the operation of giant Intel’s Foundry Division, which optimize chips for customers’ needs, but it would not exceed 50 percent, the sources said. According to sources and a different source, Qualcomm is also picked by TSMC.
Talks, which are in an early stage, come after the administration of US President Donald Trump, after requesting the TSMC, the world’s major contract chipmakers, the disturbed American industrial icons assist, the sources said on the condition of anonymity because the dialogue is not public.
The plan details for TSMC do not take a stake of more than 50 percent and its overtreters are being informed for the first time for potential partners.
Any final deal – whose value is not clear – will require approval from the Trump administration, which does not want Intel or its foundry division to have a completely foreign ownership, the sources said.
Intel, TSMC, NVDia, AMD and Qualcomm refused to comment. The White House and Broadcom did not respond to the remarks requests.
The US chipmaking is the future of the veteran at stake, whose shares have lost more than half of their value in the previous year.
Intel reported a net loss of $ 18.8 billion (about Rs. 1,64,100 crore), inspired by major loss since 1986. According to the Foundry Division’s assets and a company filing of plant equipment, there was a book value of $ 108 billion (about Rs 9,49,815 crore) till 31 December.
Trump is keen to revive the fate of Intel, as he wants to promote American advanced manufacturing, three sources said.
Sources said the TSMC’s joint venture pitch was designed for potential backers, before Taiwan’s chipmaker announced on March 3 with Trump that the company plans to invest a fresh $ 100 billion (about Rs 8,72,853 crore) in the United States, including construction of five additional chip facilities in the coming years.
Negotiations about the joint venture on Intel’s Foundry Division have continued since then, three sources said, “Looking for more than one chip designer as a partner with TSMC.”
Many companies have expressed interest in buying parts of Intel, but two of the four sources said that the American company has rejected the discussion about selling its chip design house separately from the foundry division.
Qualcomm, according to those people and a different source, has excluded all or part of Intel from the first discussions to buy.
Intel board members have made a deal and interacted with TSMC, while some officers have been strongly opposed, according to two sources.
Intel’s contract was an important part of the effort of former CEO Pat Gallinger to save the manufacturing business, or Foundry Division, Intel. Gailinger was forced by the board in December, which named two interim co-CEOs, which has moothballs its upcoming AI chip.
Any deal between historical rivals TSMC and Intel will face major challenges and will be expensive and laborious. The two companies currently use separate processes, chemicals and chipmaking tool setups in their factories, according to different sources of companies.
Intel has a construction partnership with Taiwan’s UMC and Israel’s Tower Semiconductor, which can offer an example to the two companies to work together, but it is not clear how such partnership will work about business buildings.
Taiwan’s chipmakers want potential investors in the joint venture to be Intel Advanced Manufacturing customers according to a source.
Reuters, citing sources last week, stated that Nvidia and Broadcom are running manufacturing tests with Intel, using the company’s most advanced production techniques, known as 18A. AMD is also evaluating whether the 18A construction process of Intel is suitable for this.
But in the conversation between 18A Intel and TSMC, there has been a region of controversy, two sources said. During the conversation in February, Intel officials told TSMC that its advanced 18A manufacturing technology was better than the 2-nenometer process of TSMC, according to those sources.
Âİ Thomson Reuters 2025
