TSMC's Bold Move: Teaming Up with Tech Titans to Revitalize Intel's Wafer Foundry

According to recent reports, TSMC has proposed to collaborate with NVIDIA, AMD, and Broadcom to invest in a joint venture responsible for operating Intel's wafer foundry business. TSMC will manage the operations, but its stake will remain below 50% to comply with U.S. regulations on foreign ownership.

Discussions are reportedly in the early stages, and any formalized agreement would need approval from the Trump administration, which is cautious about foreign companies gaining control over Intel's fundamental units. TSMC has also approached Qualcomm with similar investment proposals.

The potential deal is complicated by technical and strategic challenges. One key focus is Intel's cutting-edge 18A process technology, claimed to outpace TSMC's 2nm process. While NVIDIA and Broadcom are testing the 18A technology, AMD is assessing its applicability for their products.

Insiders note that the negotiations involve significant hurdles, including differences in manufacturing processes and intellectual property considerations. TSMC seeks to ensure that prospective partners become Intel's advanced process customers to create synergies.

Intel has been ambitious with its chip foundry division, but setbacks due to lagging production techniques and low yields have led to financial underperformance. Meanwhile, the U.S. government's push for domestic chip manufacturing has placed Intel's foundry department at the forefront of national policy interests, emphasizing an American-controlled future for the company.

Despite its interest, TSMC appears reluctant to assume full control of Intel’s foundry operations, influenced partly by U.S. encouragement. The semiconductor giant is weighing options to involve multiple chip design firms to revitalize Intel's struggling manufacturing arm.

To date, Intel, TSMC, AMD, and Qualcomm have refrained from commenting on the joint venture's prospects, and no responses have come from Broadcom or the White House. As talks continue, they highlight the complex interplay between U.S. technological ambitions and global industry dynamics, with significant implications for the semiconductor landscape.