Intel and Taiwan Semiconductor Manufacturing Co (TSMC) have reached a tentative agreement to form a joint venture that would operate Intel’s chip manufacturing facilities, according to a report by The Information, citing two sources familiar with the discussions.
As part of the deal, TSMC—the world’s leading contract chipmaker—will reportedly acquire a 20% stake in the newly formed entity.
The development comes amid pressure from the White House and the U.S. Department of Commerce, which have been urging both companies to find a resolution to Intel’s ongoing operational struggles.
Neither Intel nor TSMC commented on the report, and the White House did not immediately respond to Reuters’ request for comment.
In March, Reuters reported that TSMC had approached Nvidia, AMD, and Broadcom to invest in a similar joint venture, following a request from the U.S. government to assist in revitalising Intel’s faltering chip business.
Intel, which recently appointed industry veteran and former board member Lip-Bu Tan as CEO, has been seeking a turnaround after failing to capitalise on the AI-driven semiconductor boom. Despite investing heavily in expanding its manufacturing capabilities, the company has struggled to deliver the level of service offered by competitors like TSMC—resulting in delays and failed tests, according to former executives.
The company posted a net loss of US$18.8 billion for 2024—its first annual loss since 1986—largely due to significant impairments. Its stock plummeted 60% last year, while the S&P 500 rose more than 23%. However, shares have since rebounded and are up nearly 12% in 2025.
TSMC, meanwhile, recently announced plans to invest an additional US$100 billion in the U.S., including the construction of five new chip fabrication plants.–REUTERS
