Tech media outlet The Information reports that Intel has reached a preliminary agreement with Taiwan Semiconductor Manufacturing Company (TSMC) to form a joint venture focused on Intel’s contract chip manufacturing operations. 

The news broke just as markets were roiled by the announcement of sweeping U.S. reciprocal tariffs, sending the Philadelphia Semiconductor Index down 9.88%. Amid the sell-off, Intel shares rose 2%, while TSMC’s American Depositary Receipts closed down 7.6%.

Citing anonymous sources, The Information reported that senior executives at both companies have agreed in principle to launch a joint venture that would oversee Intel’s foundry business. Intel and a group of other U.S. firms would collectively hold a majority stake, giving them operational control. The deal is expected to involve at least some of Intel’s existing chip fabs.

TSMC would reportedly take a 20% equity stake in the new entity. Negotiations included discussions over TSMC contributing some of its manufacturing know-how in exchange for its minority share. However, internal concerns have surfaced among Intel executives, with some warning that the move could lead to layoffs and marginalize the company’s in-house chipmaking capabilities.

It is not yet clear which other companies would participate in the venture. Reuters previously reported that TSMC had approached Nvidia, AMD, and Broadcom to explore potential interest in joining the consortium.

Bloomberg reported in February that discussions were encouraged by the Trump administration, which sees the partnership as a way to shore up Intel’s increasingly fragile financials. Facing mounting losses, Intel has laid off thousands of workers and scaled back expansion plans. In 2024, the company posted a net loss of $18.8 billion—its first annual loss since 1986—driven largely by heavy asset write-downs.

Intel has not responded to media requests for comment, while TSMC declined to comment. The White House has also remained silent.

If finalized, the deal would mark the first major strategic initiative under Intel’s new CEO, Lip-Bu Tan, who took the helm in March 2025. At the Intel Vision conference in Las Vegas on March 31, Tan reaffirmed the company’s commitment to building a world-class foundry business.

“While we continue to strengthen Intel’s product offerings, we are equally committed to developing a best-in-class foundry operation,” Tan said during his keynote at Intel Vision 2025. “As global demand for semiconductors grows, the supply chain must be more flexible, resilient, and secure. Intel Foundry Services will play a vital role in that ecosystem, and we will push forward with our strategy to meet these demands.”

Have you read?

• TSMC’s Shohei Ohtani: The Key Man Driving Its U.S. Expansion
• Intel Names Lip-Bu Tan as New CEO, Shares Surge 12%
• Why Intel Never Caught Up to TSMC

Uploaded by Fiona Lin