Taiwan Semiconductor Manufacturing Company (TSMC) has reportedly approached Nvidia, AMD, and Broadcom with a proposal to form a joint venture with Intel’s foundry business, according to sources. The discussions highlight growing collaboration efforts in the semiconductor industry as companies seek strategic partnerships to secure chip manufacturing capacity.
TSMC Proposes Joint Venture to Operate Intel Foundries, Sources Say
SINGAPORE/NEW YORK/TAIPEI, March 12 (Reuters) – Taiwan Semiconductor Manufacturing Company (TSMC) has approached U.S. chipmakers Nvidia, Advanced Micro Devices (AMD), and Broadcom about investing in a joint venture to manage Intel’s foundry operations, according to four sources familiar with the discussions.
Under the proposal, TSMC would oversee Intel’s foundry division, which produces custom chips for clients, while limiting its ownership stake to under 50%, the sources said. Qualcomm has also been approached regarding the venture, according to two sources.
TSMC in Early Talks to Help Revive Intel Foundry, Sources Say
Discussions are in the early stages as TSMC explores a potential role in managing Intel’s foundry operations, following a request from the Trump administration, sources revealed on condition of anonymity. The U.S. government is seeking to stabilize the struggling chipmaker while ensuring its foundry division remains under partial domestic control.
This is the first report detailing TSMC’s plan to limit its stake to no more than 50% and its outreach to potential partners. Any final agreement—whose value remains unclear—would require approval from the Trump administration, which opposes full foreign ownership of Intel’s foundry business, the sources added.
Key Players Stay Silent as Intel’s Future Hangs in the Balance
Intel, TSMC, Nvidia, AMD, and Qualcomm declined to comment on the ongoing discussions, while the White House and Broadcom did not respond to requests for remarks.
At stake is the future of Intel, the U.S. chipmaking giant whose stock has lost over half its value in the past year. The company reported a net loss of $18.8 billion in 2024—its first since 1986—largely due to significant impairments. As of December 31, Intel’s foundry division held property and equipment valued at $108 billion, according to a company filing.
Former President Donald Trump is eager to revive Intel’s fortunes as part of his push to strengthen American advanced manufacturing, three sources said.
TSMC Pitched Intel Foundry Joint Venture Before Announcing $100 Billion U.S. Investment
TSMC approached potential partners for a joint venture to manage Intel’s foundry division before announcing a $100 billion U.S. investment with former President Donald Trump on March 3, according to sources. The investment includes plans to build five additional chip facilities in the coming years.
Discussions on the joint venture have continued, with TSMC seeking multiple chip designers as partners, three sources said. While several companies have shown interest in acquiring parts of Intel, the U.S. chipmaker has reportedly refused to sell its chip design unit separately from the foundry business, according to two of the four sources.
Qualcomm, which had previously engaged in talks to acquire all or part of Intel, has since withdrawn from discussions, sources added.
Intel Board Backs TSMC Deal Amid Internal Opposition and Manufacturing Challenges
Intel’s board has supported negotiations with TSMC over a potential joint venture, though some executives remain strongly opposed, according to two sources. The foundry division—a key pillar of former CEO Pat Gelsinger’s turnaround plan—has faced uncertainty since his departure in December. Intel’s interim co-CEOs have already halted the company’s upcoming AI chip project.
A deal between longtime rivals Intel and TSMC would be complex and costly, as both companies operate with vastly different manufacturing processes, chemicals, and tool setups, sources from each company said. While Intel has collaborated with Taiwan’s UMC and Israel’s Tower Semiconductor in the past, it remains unclear how trade secrets would be managed in a deeper partnership with TSMC.
TSMC is seeking investors in the joint venture who would also become customers of Intel’s advanced manufacturing services, one source noted. Nvidia and Broadcom are already testing Intel’s 18A manufacturing technology, and AMD is evaluating its suitability, Reuters previously reported.
However, Intel’s 18A process has been a sticking point in discussions. In February talks, Intel executives asserted that their 18A node was superior to TSMC’s 2-nanometer technology, according to two sources.