Intel and TSMC Reportedly Plan Joint Venture for Chipmaking: Report
Intel and Taiwan Semiconductor Manufacturing Company (TSMC) have reportedly reached a preliminary agreement to form a joint venture to manage Intel’s chipmaking facilities, according to tech news outlet The Information. The move aims to strengthen U.S. semiconductor manufacturing, with TSMC expected to take a 20% stake in the new entity.
This development follows efforts by former U.S. President Donald Trump to revitalize Intel and bring more advanced chip production back to American soil. Trump had previously accused Taiwan of “stealing” the U.S. chip industry and has urged companies to shift manufacturing to the U.S.
TSMC has already committed to investing at least $100 billion in U.S.-based chip facilities, including over $65 billion in Arizona for three plants, with one beginning production in late 2024.
Despite the agreement, some Intel executives are reportedly concerned about potential disruption to Intel’s in-house technology development and fear job losses. The companies also face technical challenges, as they use different materials and manufacturing equipment.
TSMC has long been under pressure to reduce reliance on Taiwan amid geopolitical tensions with China.
Source: The Economic Times
