Washington: Intel and Taiwan Semiconductor Manufacturing Corporation (TSMC) have reached a preliminary agreement to establish a joint venture to operate Intel’s chip manufacturing facility, technology news media reported on Thursday.
The Trump administration reportedly launched negotiations between two semiconductor giants to revitalize Intel, which has been creating setbacks in recent years.
The information says TSMC plans to acquire a 20% stake in the new company.
U.S. President Donald Trump has previously accused Taiwan of “stealing” the U.S. chip industry and has been pushing to bring advanced manufacturing back to U.S. land.
The plan coincides with TSMC’s recent announcement that it will invest at least $100 billion in the U.S. to build state-of-the-art manufacturing facilities.
The information report said that despite the preliminary agreement, the proposed joint venture still faces boycott from some Intel executives, fearing the deal could undermine the development of Intel’s own chip manufacturing technology and lead to widespread layoffs.
Given that the two companies use different production equipment models and materials, this is also a question about how the two companies will integrate their operations.
Intel did not immediately respond to a request for comment. TSMC declined to comment.
TSMC has long faced demands to move more production away from Taiwan, fearing that supply of key technologies could be disrupted in any conflict with Beijing.
The company assured during the administration of former President Joe Biden that it invested more than $65 billion in three Arizona plants, one of which began production by the end of 2024.
So far, semiconductors have exempted the damage from the trade tariffs announced to the White House by Trump on Wednesday, but U.S. leaders often put pressure on TSMC and other chip makers because they lack U.S. production.
