In a move that could reshape the semiconductor landscape, Intel and Taiwan Semiconductor Manufacturing Company (TSMC) have reportedly reached a tentative agreement to form a joint venture focused on operating Intel’s U.S.-based chip manufacturing plants. According to The Information, which cites two individuals involved in the discussions, TSMC is expected to take a 20% stake in the proposed venture.
This potential partnership is being closely watched by the U.S. government. Officials from the White House and the Department of Commerce have reportedly been urging both companies to collaborate as part of a broader push to stabilize Intel’s position in the global chip market. Neither Intel nor TSMC has issued a public comment on the deal, and the White House has not responded to media inquiries.
The effort comes amid ongoing efforts to revitalize Intel, which has struggled to keep pace with global competitors in recent years. While TSMC continues to dominate the market as the world’s largest contract chipmaker, Intel has faced challenges as it attempts to expand its foundry services for external clients.
A Struggling Giant Looks for Reinvention
Intel’s fortunes have taken a sharp downturn in recent years, as it missed out on the AI-driven surge that benefited other chipmakers. The company has invested billions in building out its chipmaking infrastructure, yet results have fallen short of expectations. Customers have reported delays, underwhelming technical support, and missed deadlines—factors that have led many to turn to rivals like Taiwan Semiconductor Manufacturing Company (TSMC) for more reliable service.
Earlier this year, Intel appointed veteran chip executive and former board member Lip-Bu Tan as CEO in an effort to restore its competitive edge. Tan’s leadership marks a pivotal point in Intel’s transformation strategy, as he works to navigate the company through a complex landscape shaped by supply chain challenges, rapid technological evolution, and geopolitical tensions.
Financially, 2024 was a bruising year for the Silicon Valley icon. Intel posted a staggering net loss of $18.8 billion—the company’s first annual loss since 1986—largely due to impairments and strategic missteps. Its stock plummeted by 60% in the same period, even as the broader S&P 500 index rose more than 23%. While shares have recovered somewhat in early 2025, posting a 12% gain so far, significant challenges remain.
TSMC Expands U.S. Footprint Amid Growing Demand
The potential Intel-TSMC alliance comes at a time when Taiwan Semiconductor Manufacturing Company (TSMC) is significantly expanding its U.S. presence. In a press event last month, the company announced plans to invest an additional $100 billion to build five new chip manufacturing facilities in the United States. This massive commitment signals TSMC’s strategic pivot to support American semiconductor production and meet surging demand for advanced chips.
Earlier reports revealed that Taiwan Semiconductor Manufacturing Company (TSMC) had also approached major U.S. tech firms including Nvidia, AMD, and Broadcom, offering them the opportunity to invest in a similar venture aimed at revitalizing Intel’s chipmaking business. Whether this latest partnership with Intel materializes into a full-fledged joint venture remains to be seen, but industry experts agree that such collaboration could be a game-changer in U.S. efforts to regain dominance in semiconductor manufacturing.
