Intel’s Foundry Future in Doubt: TSMC Reportedly Eyes Joint Venture with Nvidia, AMD, and Qualcomm
Intel’s semiconductor manufacturing business has been in turmoil for months, and now a major shake-up could be on the horizon. With the company’s financial struggles mounting, job cuts, and leadership changes, new reports suggest Taiwan Semiconductor Manufacturing Company (TSMC) is exploring a joint venture to take control of Intel’s foundry operations.
Intel’s Foundry Spin-Off Faces Uncertainty
Last September, Intel announced plans to establish its foundry business as an independent subsidiary in an effort to revive its competitive edge in the global semiconductor industry. However, the recent $7.86 billion federal funding award under the CHIPS and Science Act has cast doubt on whether the spin-off will proceed as planned.
A filing by Intel indicated that receiving these government subsidies could limit its ability to sell stakes in its chip manufacturing division. This development, coupled with financial instability, has raised questions about whether Intel can sustain its foundry operations independently.
Adding to the uncertainty, Intel’s interim co-CEOs, Michelle Johnston Holthaus and David Zinsner, admitted in December that the company might be forced to sell its manufacturing arm if next year’s anticipated chip-making technology fails to deliver.
TSMC’s Joint Venture Proposal with Industry Giants
In a surprising twist, reports from Reuters suggest that TSMC has approached leading tech giants, including Nvidia, AMD, Broadcom, and Qualcomm, about investing in a joint venture that would take over Intel’s chip-making operations. Under this potential deal, TSMC would run the foundry division, ensuring efficient manufacturing, while keeping its ownership stake below 50% to comply with U.S. regulations.
The discussions are still in the early stages, and the Biden administration’s position on foreign involvement in Intel’s foundry division remains a key factor in determining the outcome. Given former President Donald Trump’s vocal opposition to the CHIPS Act and his potential return to office, the geopolitical implications of a Taiwan-led initiative in a U.S.-based semiconductor firm could complicate negotiations.
Geopolitical and Market Implications
The semiconductor industry is a critical component of national security, and any major restructuring of Intel’s manufacturing operations will face intense scrutiny from the U.S. government. The Biden administration’s multi-billion-dollar investment in Intel underscores its commitment to keeping America’s semiconductor production competitive. At the same time, Trump’s stated opposition to the CHIPS Act raises concerns about potential policy shifts that could affect the industry’s future.
With Intel, TSMC, Nvidia, AMD, and Qualcomm declining to comment on the matter, the tech world is left speculating about what could be one of the biggest semiconductor shake-ups in recent history. As the global demand for advanced chips continues to rise, Intel’s foundry division remains at the center of a high-stakes battle for technological supremacy.
