TSMC Eyes Intel Foundry Takeover, Courts Nvidia, AMD, and Broadcom for Joint Venture

TSMC has approached U.S. chip giants nvidia, broadcom and amd about investing in a joint venture to operate Intel's foundry division, according to four sources familiar with the discussions. Qualcomm was also pitched as a potential partner, according to Reuters, citing two separate sources. 

Under the proposal, tsmc would manage Intel's foundry operations but would not take a majority stake, ensuring it holds no more than 50%, sources said. The discussions, still in early stages, align with the Trump administration's push for TSMC to play a role in reviving intel, a long-time U.S. semiconductor leader that has struggled in recent years.

Once a dominant force in the semiconductor industry, Intel has faced increasing pressure as AMD gained market share in CPUs while the company continued to burn cash in its chipmaking business. In 2024, Intel posted a staggering net loss of $18.8 billion, while its foundry division reported a book value of $108 billion in property and plant equipment.

Despite its financial troubles, Intel has resisted efforts to break apart its operations. While multiple companies have explored acquiring parts of the company, Intel has rejected discussions about selling off its chip design unit separately from the foundry business, according to sources.

However, a potential joint venture with TSMC remains on the table, with key Intel board members backing a deal. Internally, though, some executives remain firmly opposed, complicating negotiations.

Before announcing a massive $100 billion investment in U.S. semiconductor manufacturing—adding three new fabs, two advanced packaging facilities, and an R&D center—TSMC had already pitched the joint venture idea to potential partners, sources said. This investment may serve as a strategic move to preempt possible tariffs from the Trump administration on semiconductor imports.

Discussions over Intel's foundry unit have continued, with TSMC looking to secure backing from multiple chip designers. A final agreement would require approval from the Trump administration, which is keen to prevent full foreign ownership of Intel's foundry business.

Despite ongoing talks, a deal between TSMC and Intel would present significant hurdles. The two companies employ vastly different manufacturing processes, chemical compositions, and chip fabrication tools, making integration complex and costly.

Intel's most advanced production technology, known as 18A, has been a sticking point in negotiations. Two sources revealed that during talks in February, Intel executives claimed that their 18A node outperformed TSMC's 2-nanometer process.

Meanwhile, Nvidia and Broadcom are already testing Intel's 18A capabilities, with AMD also evaluating whether the process meets its needs, according to a Reuters report.

While Qualcomm previously considered acquiring all or part of Intel, sources said the company has since withdrawn from discussions.