TSMC has approached major U.S. chip designers—including Nvidia, AMD, and Broadcom—about investing in a joint venture that would take over operations of Intel’s foundry division. According to sources familiar with the discussions, TSMC would manage the division but would not own more than 50% of it. Qualcomm was also reportedly invited to join the venture.

These early-stage talks come in response to pressure from the U.S. government, which is keen on reviving Intel’s struggling business. Former President Trump’s administration had previously encouraged TSMC to play a role in turning around Intel, which has been in financial decline. Intel reported a massive $18.8 billion net loss in 2024—its first in decades—and its stock has lost over half its value in the past year.

The idea behind this joint venture is that TSMC would operate Intel’s foundry, which focuses on manufacturing custom chips for clients, while bringing in multiple chip designers as partners. However, the U.S. government has made it clear that it does not want Intel or its foundry division to be fully foreign-owned.

Intel’s board appears divided on the matter—some members have backed the proposal, while certain executives remain firmly opposed. The company has previously partnered with Taiwan’s UMC and Israel’s Tower Semiconductor on manufacturing, but a deal with TSMC would be on a much larger scale and come with significant challenges.

One of the key issues in negotiations has been Intel’s 18A manufacturing process, which the company claims is more advanced than TSMC’s upcoming 2-nanometer technology. Intel has been running production tests with Nvidia and Broadcom using this technology, while AMD is still evaluating whether it fits their needs. Despite the complexity and potential roadblocks, discussions between TSMC, Intel, and prospective partners are ongoing. TSMC is particularly interested in ensuring that investors in the joint venture are also customers of Intel’s advanced manufacturing technology.

Disclaimer: This image is taken from Reuters.