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Shares of Intel are jumping more than 7% in premarket trading Wednesday following a report that TSMC has approached U.S. chip designers Nvidia, Advanced Micro Devices, and Broadcom about forming a joint venture to own and run the chipmaker's foundry division.
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According to Reuters, TSMC wouldn't own more than 50% of the JV.
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Intel shares have lost about 55% of their value in the past 12 months entering Wednesday.
Shares of Intel (INTC) are jumping more than 7% in premarket trading Wednesday following a report that Taiwan Semiconductor Manufacturing Company (TSM) has approached U.S. chip designers Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO) about forming a joint venture to own and run the U.S. chipmaker's foundry division.
"Qualcomm (QCOM) has also been pitched by TSMC, according to one of the sources and a separate source," said the report, which cited "four sources familiar with the matter."
According to Reuters, TSMC, the world's largest contract chipmaker, has floated running the foundry division, which makes custom chips for other companies. The report, which noted that the talks are at an early stage, said TSMC wouldn't own more than 50% of the JV.
Reuters added that the Trump administration has asked TSMC for help in turning around Intel. Intel's foundry business has been in the spotlight as a potential beneficiary of the Trump administration's stated goal of ensuring artificial intelligence chips are designed and manufactured domestically.
Intel, TSMC, Nvidia, AMD, Broadcom, and Qualcomm didn't immediately respond to Investopedia requests for comment.
Intel shares have lost about 55% of their value in the past 12 months entering Wednesday.
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