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Taiwanese chipmaker TSMC has approached major US chipmakers including Nvidia, Advanced Micro Devices (AMD) and Broadcom with an offer to acquire a stake in a potential joint venture (JV) that would manage Intel's foundry operations, reported Reuters, citing sources.
According to sources, the proposal suggests that TSMC would oversee Intel's foundry division, which manufactures custom chips for clients, while holding no more than a 50% ownership stake.
In addition to Nvidia, AMD and Broadcom, Qualcomm is also said to have been pitched by TSMC regarding the JV.
The proposal comes amid ongoing efforts by the Trump administration to support Intel’s turnaround.
TSMC would be involved in revitalising Intel’s foundry division, but reportedly the US Government is seeking to ensure that Intel remains a largely US-owned entity.
The talks, which are in their early stages, follow a request from the Trump administration for TSMC to assist in addressing Intel's significant operational challenges.
Intel has seen its stock price fall by more than 50% in the past year, while its foundry division's property and plant equipment were valued at $108bn as of 31 December 2024.
Intel also reported a net loss of $18.8bn for 2024.
In February, Intel announced a delay in its $20bn chipmaking project in Ohio, citing slow US grant disbursement and market challenges.
The potential deal would require approval from the US Government, which has expressed concerns about allowing a foreign entity to fully own Intel's foundry operations.
According to sources, any final agreement on the venture's structure would likely include multiple chipmakers as partners, with TSMC aiming to bring on board more than one investor.
At the same time, discussions regarding the sale of parts of Intel have been ongoing, although two of the sources noted that Intel has rejected any proposals to sell its chip design business separately from its foundry operations.
Qualcomm has also reportedly withdrawn from discussions regarding a full or partial acquisition of Intel.
The talks come just days after TSMC announced plans, in collaboration with the Trump administration, to invest $100bn (T$3.3trn) in new US chip manufacturing facilities.
"TSMC reportedly approaches US chipmakers for stake in Intel foundry JV" was originally created and published by Verdict, a GlobalData owned brand.
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