TSMC Proposes Joint Venture with Nvidia, AMD, and Broadcom for Intel’s Foundry

Taiwan Semiconductor Manufacturing Company (TSMC) has approached U.S. chip designers Nvidia, Advanced Micro Devices (AMD), and Broadcom with a proposal to invest in a joint venture that would manage Intel’s foundry operations. According to media reports quoting sources, TSMC would operate Intel’s foundry division but would not hold a majority stake, ensuring that ownership remains within U.S. control. Qualcomm was also reportedly considered for the investment.

These discussions come at a time when Intel is facing significant financial challenges, with its stock value halving over the past year and reporting a net loss of $18.8 billion in 2024—its first loss since 1986. The company’s foundry division, valued at $108 billion in assets, is a key component of its turnaround strategy. The U.S. government is closely monitoring the talks, emphasizing the importance of keeping Intel’s advanced manufacturing capabilities under American influence.

TSMC’s initiative aligns with its broader expansion strategy in the United States. On March 3, the company, alongside former U.S. President Donald Trump, announced a $100 billion investment to build five new semiconductor facilities in the country. While discussions about the Intel foundry joint venture are ongoing, TSMC aims to collaborate with multiple chip designers to strengthen the deal.

Sources indicate that several companies have expressed interest in acquiring parts of Intel, but the company has resisted breaking up its chip design and foundry divisions. Qualcomm, which previously considered purchasing Intel assets, has withdrawn from negotiations. Meanwhile, Intel’s board members have engaged in discussions with TSMC, but internal disagreements persist among executives.

A potential partnership between Intel and TSMC would present technological challenges, as the two companies use different manufacturing processes and materials. Intel’s advanced 18A manufacturing technology has been a point of contention in negotiations, with the company asserting its superiority over TSMC’s 2-nanometer process. Nvidia and Broadcom have already begun testing Intel’s 18A technology, while AMD is evaluating its feasibility.

Source: The Economic Times