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Intel and TSMC have tentatively agreed to form a joint venture that would run the U.S. company’s foundry business, The Information reported Thursday.
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TSMC will hold a 20% stake in the combined company under the terms of the deal, the report said.
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Intel shares gained Thursday, while TSMC shares lost ground amid a broad-based decline as worries about new tariffs announced by the Trump administration rattled markets.
Intel (INTC) and Taiwan Semiconductor Manufacturing Company (TSM) have tentatively agreed to form a joint venture that would run the U.S. company’s foundry business.
TSMC, the world's largest chip manufacturer, will own a 20% stake in the combined company, according to reports citing The Information. TSMC declined to remark on the reports, while Intel did not immediately respond to a request for comment.
Intel’s foundry division produces chips for third-party customers. The business has long been the subject of deal speculation, including a report last month that TSMC approached several other chipmakers about a joint venture to operate Intel’s chipmaking facilities.
The report of a tentative deal also comes less than a day after President Trump announced a sweeping package of tariffs against goods imported from other countries.
Intel shares gained 2% Thursday, while TSMC shares lost close to 8% amid a broad-based decline as worries about the new tariffs rattled markets. (Read Investopedia's live coverage of today's markets here.)
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