Short: It seems to previous reports that TSMC and Intel Team are ready to create a joint venture to operate the US Fabs of Blue. Technical giants are said to have reached an initial agreement on the plan, which has been pushed by the White House and the Department of Commerce in the hope of helping them address their current manufacturing crisis.
The deal will take a 20% stake in TSMC, the world’s largest contract chipmaker, a new company. The report comes from the information, citing two people familiar with this matter.
In March, it was reported that TSMC proposed a joint venture that would see that it would take a share in Intel’s Foundry Business with NVIDIA, AMD, Broadcom and Qualcomm. It is possible that one or more of those companies own some of the 80% enterprises.
Nvidia CEO Jensen Huang said two weeks ago that a consortium was never contacted to invest in a joint venture. “Nobody invited me. Perhaps other people are involved, but I don’t know. There may be a party. I was not invited,” he said. A member of the TSMC board also denied that there was a discussion.
At the end of last year, it was reported that Qualcomm had contacted Intel with an acquisition offer. It returned from a complete acquisition in November, although buying select divisions remains a possibility.
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The Trump administration does not want Intel or its foundry business to be completely foreign owned, but the government is aware of Intel’s urge to move around the fate.
Government officials met TSMC officials last month to increase the idea of a deal between the company and Intel. The TSMC was called receptive, which probably came as a relief for the administration as it sees accidental plans in the event of Intel crash.
Intel’s Foundry Division reported a loss of more than $ 13 billion at $ 17.5 billion in revenue in 2024. Overall for the year, the company’s first annual loss since 1986 was $ 18.8 billion.
The TSMC has announced that it will invest an additional $ 100 billion in the Chip construction industry of the United States, which will add the previous $ 65 billion commitment. Money will be used to manufacture five new chip features among other projects. It is not clear how the joint venture combined with Intel will fit in these schemes.
