In an intriguing development, Taiwan Semiconductor Manufacturing Company (TSMC) is exploring a partnership with major U.S. tech companies to potentially take over Intel’s manufacturing division. This move is more than just business; it has the Trump administration’s nod, which started these discussions.
TSMC is reaching out to big names in the U.S. chip design world—think Nvidia, AMD, Broadcom, and Qualcomm. The idea? To form a joint venture and buy Intel’s foundry division. This isn’t coming out of the blue; it’s a follow-up on rumors from earlier this year and fits well with TSMC’s growing investments in the U.S.
Sources close to the talks say TSMC wants to keep its ownership to 50% or less. Why? The Trump administration wants to make sure the foundry division stays partly under domestic control. They’re still in the early stages, but the intention is clear.
Intel is feeling the heat after reporting a financial loss—the first since 1986—with a net loss of $18.8 billion for 2024. The foundry division, which makes custom chips, is a big part of Intel’s assets, valued at $108 billion.
While Intel’s board is open to these discussions, not everyone is on board. Some managers are concerned about the technical and financial hurdles, given the different manufacturing processes involved.
Interestingly, Nvidia and Broadcom are already testing Intel’s advanced 18A manufacturing technology, and AMD is also checking out its potential. These evaluations could lead to exciting collaborations down the line.
One thing’s for sure: any deal will need U.S. government approval to ensure Intel’s foundry division doesn’t end up entirely under foreign control. It’s a delicate balance, but one that could reshape the tech landscape.
