The Information says a preliminary agreement was discussed to operate the US chipmaker’s factories
06 April 2025 - 12:56
byJaspreet Singh
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Intel and Taiwan Semiconductor Manufacturing Company (TSMC) have recently discussed a preliminary agreement to form a joint venture to operate the US chipmaker’s factories, the Information reported on Thursday, citing two people involved in the discussions.
TSMC, the world’s largest contract chipmaker, will take a 20% stake in the new company, the report said.
The White House and commerce department officials have been pressing TSMC and Intel to strike a deal to resolve the long-running crisis at Intel, the report said.
Intel and TSMC declined to comment, while the White House did not immediately respond to a request for comment.
Reuters reported in March that TSMC had pitched Nvidia, Advanced Micro Devices and Broadcom to take stakes in a joint venture that would operate Intel’s factories, after the US administration requested the Taiwanese chipmaking giant to help turn around the troubled US icon.
Intel in March appointed former board member and chip industry veteran Lip-Bu Tan as its CEO to revive its fortunes after it missed out on the AI-driven semiconductor boom while ploughing billions of dollars into building out its chip-making business.
The company’s efforts to manufacture chips for external clients have faced challenges as it fell short of providing the level of customer and technical service as rival TSMC, leading to delays and failed tests, former executives said.
Intel reported 2024 net loss of $18.8bn, its first since 1986, driven by large impairments.
Shares of the company lost 60% of their value in 2024, compared with a more than 23% rise in the benchmark S&P 500 index.
The shares have recovered some of those losses this year and are up nearly 12%.
Last month, TSMC said at a press event that it plans to make a fresh $100bn investment in the US that involves building five additional chip facilities.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Intel, TSMC reportedly explored chipmaking joint venture
The Information says a preliminary agreement was discussed to operate the US chipmaker’s factories
Intel and Taiwan Semiconductor Manufacturing Company (TSMC) have recently discussed a preliminary agreement to form a joint venture to operate the US chipmaker’s factories, the Information reported on Thursday, citing two people involved in the discussions.
TSMC, the world’s largest contract chipmaker, will take a 20% stake in the new company, the report said.
The White House and commerce department officials have been pressing TSMC and Intel to strike a deal to resolve the long-running crisis at Intel, the report said.
Intel and TSMC declined to comment, while the White House did not immediately respond to a request for comment.
Reuters reported in March that TSMC had pitched Nvidia, Advanced Micro Devices and Broadcom to take stakes in a joint venture that would operate Intel’s factories, after the US administration requested the Taiwanese chipmaking giant to help turn around the troubled US icon.
Intel in March appointed former board member and chip industry veteran Lip-Bu Tan as its CEO to revive its fortunes after it missed out on the AI-driven semiconductor boom while ploughing billions of dollars into building out its chip-making business.
The company’s efforts to manufacture chips for external clients have faced challenges as it fell short of providing the level of customer and technical service as rival TSMC, leading to delays and failed tests, former executives said.
Intel reported 2024 net loss of $18.8bn, its first since 1986, driven by large impairments.
Shares of the company lost 60% of their value in 2024, compared with a more than 23% rise in the benchmark S&P 500 index.
The shares have recovered some of those losses this year and are up nearly 12%.
Last month, TSMC said at a press event that it plans to make a fresh $100bn investment in the US that involves building five additional chip facilities.
Reuters
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