TAIPEI, Taiwan – Taiwan Semiconductor Manufacturing Company (TSMC) has proposed a groundbreaking joint venture with major players in the semiconductor industry to take over Intel’s struggling semiconductor foundries. Sources close to the matter revealed that TSMC has reached out to companies like Nvidia, Advanced Micro Devices (AMD), and Broadcom to discuss the potential partnership.
If the talks come to fruition, TSMC would hold a 50% stake in the joint venture, which has received interest from Qualcomm as well. The proposal, initially backed by the previous U.S. administration, aligns with a request from the government to involve TSMC in Intel’s recovery efforts.
Intel’s foundry division has faced challenges competing with the likes of TSMC and Samsung, leading to significant financial losses for the company. Despite Intel’s valuation of its foundry assets at $108 billion, the corporation recorded a $18.8 billion loss in 2024, its first since 1986. Intel has resisted calls to separate its design division from its foundry business despite numerous acquisition offers.
While some within Intel remain hesitant, key board members have expressed support for the joint venture. However, operational and technical obstacles loom large as differences in production techniques and equipment between Intel and TSMC could pose challenges to collaboration.
The potential partnership between Intel and TSMC holds significant implications for the global semiconductor supply chain, particularly amid escalating U.S.-China trade tensions and Taiwan’s crucial role in chip manufacturing. The collaboration could reshape the industry landscape and drive innovation in semiconductor production.
As the discussions progress, stakeholders like Nvidia, Broadcom, and AMD are carefully evaluating the opportunity to work with Intel. Intel has touted its 18A manufacturing process as superior to TSMC’s 2-nanometer technology, highlighting the potential synergy that the joint venture could bring to the table.
Overall, the proposed joint venture between TSMC and industry giants like Intel marks a pivotal moment in the semiconductor industry, with far-reaching implications for technology development and supply chain dynamics. The outcome of the talks could reshape the competitive landscape and set a new course for innovation in semiconductor production.