Intel and TSMC have reached a preliminary agreement to create a joint venture to operate the US semiconductor manufacturer's factories, "The Information" reports, citing two sources close to the discussions. Under the agreement, TSMC, the world's largest foundry, would hold a 20% stake in the new entity.
The White House and Commerce Department officials are said to have put pressure on the two groups to reach an agreement, with the aim of resolving the ongoing crisis at Intel, according to the American media outlet.
In March, we reported that TSMC had offered Nvidia, AMD and Broadcom stakes in a joint venture to operate Intel's factories, at the request of the U.S. administration, which was seeking the Taiwanese giant's help in reviving the declining American tech icon, then subject to multiple scenarios.
Last month, Intel appointed former board member and semiconductor industry veteran Lip-Bu Tan as its new CEO. The appointment is part of a turnaround attempt after the company missed out on the artificial intelligence chip boom, despite massive investment in expanding its production capacity.
Intel's efforts to manufacture chips for external customers ran up against several obstacles: according to former executives, the group was unable to provide a level of customer service and technical support comparable to that of TSMC, leading to delays and test failures.
In 2024, Intel posted a net loss of $18.8bn, its first since 1986, mainly due to heavy write-downs. The company's share price fell by 60% over the year, while the S&P 500 index gained over 23%. Since the beginning of the year, however, the stock has recovered some of its losses, rising by almost 12%.
Last month, TSMC announced at an event that it planned to invest a further $100 billion in the United States, as part of the construction of five new chip manufacturing facilities.
