Intel May Have a Partner

Intel and Taiwan Semiconductor Manufacturing (TSMC) have reportedly reached a preliminary agreement that could reshape the U.S. semiconductor landscape. According to The Information, TSMC is preparing to acquire a 20% stake in Intel’s chip foundry business, creating a new joint venture between the companies.

The reported partnership would involve TSMC sharing valuable intellectual property and assisting Intel with foundry operations. This deal reportedly emerged from Trump administration efforts to revitalize Intel, which has faced manufacturing challenges in recent years.

This potential collaboration aligns with TSMC’s commitment to invest at least $100 billion in U.S.-based manufacturing facilities. This follows previous pledges made during the Biden administration to invest over $65 billion in three Arizona factories, one of which began production in late 2024.

Challenges and Concerns

Despite the preliminary agreement, the proposed venture faces internal resistance. Some Intel executives reportedly oppose the deal, concerned it could disrupt Intel’s technology development and result in significant job cuts. Questions remain about operational integration, as the companies use different production equipment and materials.

The semiconductor industry has become increasingly important in U.S. policy. President Trump has previously advocated for returning advanced manufacturing to American soil. Despite Wednesday’s announcement of wide-ranging tariffs, semiconductors have been spared from these new trade measures.

New Leadership at Critical Time

Intel’s recently appointed CEO, Lip-Bu Tan, addressed company challenges during his Intel Vision conference keynote just two weeks into his tenure. “We have a lot of hard work ahead. There are areas we have fallen short of [customers’] expectations,” Tan acknowledged. He committed to assembling strong teams to “correct past mistakes” and prioritize recruiting “the best talent in the industry.”

While Intel maintains strong market share in PC processors, it trails competitors like Nvidia and AMD in GPUs crucial for AI applications. The company has struggled to maintain its formerly dominant position in the rapidly evolving semiconductor industry.

Neither Intel nor TSMC immediately responded to requests for comment on the reported deal.