Intel and TSMC Partner on U.S. Chip Fab Joint Venture

Intel and Taiwan Semiconductor Manufacturing Co. (TSMC) have reportedly reached a preliminary agreement to form a joint venture to operate Intel's semiconductor fabrication plants in the United States, according to a report from The Information cited by Reuters.

While details remain limited and neither company has publicly commented, the agreement marks a potentially significant shift in the global semiconductor landscape.

What We Know So Far

• TSMC is said to hold a 20% stake in the joint venture.

• Instead of contributing cash, TSMC will reportedly provide training and share its chipmaking practices with Intel employees.

• The venture would manage multiple Intel fabs—some of which are built for exclusive Intel use, such as those based on Intel 3, Intel 4, and Intel 18A process technologies.

The rest of the ownership structure remains unclear. Earlier reports suggested TSMC had approached U.S. chip designers like AMD, Broadcom, Nvidia, and Qualcomm about joining—but some, including Nvidia, have publicly denied involvement.

Government Influence and Strategic Purpose

According to The Information, the U.S. White House and Department of Commerce influenced the arrangement as part of a broader strategy to stabilize Intel, which has struggled to reclaim leadership in both semiconductor products and manufacturing technology under its IDM 2.0 strategy.

At the same time, the U.S. government reportedly opposes the outright sale of Intel’s fabs to a foreign company—making a partial joint venture with a strategic ally like TSMC a viable alternative.

Market Reaction

Intel’s stock surged nearly 7% after the report surfaced, recovering from recent losses linked to newly announced U.S. import tariffs.

In contrast, TSMC’s U.S.-listed shares fell by about 6%, suggesting investor caution about the company's deeper involvement in U.S.-based operations.

TSMC is also in the midst of its own expansion efforts, including a $165 million investment in its Fab 21 facility in Arizona, where it manufactures chips for partners like Apple.

Both Intel and TSMC are currently in quiet periods, limiting their ability to publicly confirm or elaborate on the reported plans.

What This Means

If confirmed, this joint venture could reshape U.S. chip manufacturing—pairing Intel’s infrastructure with TSMC’s production expertise. The move may help Intel accelerate progress on its lagging fabrication roadmap while keeping the fabs under partial American ownership, aligning with both U.S. industrial policy and national security interests.

For TSMC, the venture expands its influence in the U.S. without full capital exposure, though the mixed market response suggests some investor concern about risks to its core business model.

The deal also raises broader questions: Could this model of hybrid fab operation be a template for future global chip collaborations? If so, it may mark a new era of cross-border cooperation in securing the future of semiconductor manufacturing.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.