The online technology publication The Information reported today that Intel and Taiwan Semiconductor Manufacturing Company have reached a tentative agreement to form a joint venture in which TSMC would operate Intel’s chipmaking facilities.
As part of the agreement, TSMC, the world’s biggest chip manufacturer that recently celebrated the expansion of its most advanced, 2nm process fab, will also purchase a 20 percent stake in the joint venture, according the article in The Information. TSMC also announced last month a $100 billion plan to expand its footprint in the U.S. with the construction of three new fabrication plants, two advanced packaging facilities and an R&D center in Arizona.
Reuters reported that neither company responded to requests for comment. It’s not clear how or if this joinr venture fits with a Reuters report in March that TSMC had approached Nvidia, AMD and Broadcom on a joint venture to operate Intel’s fabs.
It is believed the Trump Administration supports theIntel-TSMC talks as a means of strengthening Intel, the biggest U.S.-based chip manufacturer, The Information said.
There has been extensive speculation about how Intel will change and evolve under the leadership of new CEO Lib-Bu Tan, the former Cadence CEO and venture capitalist who in March replaced former CEO Pat Gelsinger, who left Intel in December.
In tel’s foundry business property and plant equipment had a book value of $108 billion as of the end of 2024, according to a company filing.
