According to sources from Reuters, a potential partnership is brewing between Intel and TSMC in the United States. The report reveals that the two tech giants have entered into preliminary talks to establish a joint venture, with TSMC expected to receive a 20% stake in the new U.S.-based entity.
This move reportedly comes in response to pressure from the White House and the U.S. Department of Commerce, aimed at helping Intel navigate its ongoing challenges and stabilize its position in the semiconductor industry.
Reuters reached out to the involved parties for confirmation. However, Intel and Nvidia declined to comment, and the U.S. government has not yet responded.
If confirmed, the partnership could signal a strategic shift in how the U.S. seeks to strengthen domestic chip production by leveraging global partnerships—notably with leading players like TSMC, the world’s largest contract chipmaker.
AMD, Nvidia, and Broadcom may be involved
It’s still uncertain whether Intel will retain the remaining 80% stake in the proposed joint venture with TSMC. Recently, rumors have surfaced suggesting that TSMC may have reached out to other major players in the hardware industry—Nvidia, AMD, and Broadcom—to join the initiative. If true, each company would likely take on a unique role and level of involvement in the partnership.
This potential collaboration appears to be orchestrated with support from the U.S. government, which is working to bolster Intel, a key player in the American tech landscape and long-time leader in the CPU market. The goal is to help Intel regain global relevance amid growing competition.
Intel’s current challenges have been building for some time, intensifying after issues with its Raptor Lake processors, and the steady loss of market share to AMD, which continues to grow across multiple segments. A series of internal decisions and strategic missteps further deepened the crisis, eventually leading to the departure of former CEO Pat Gelsinger at the end of last year.
Now under new leadership, Intel is undergoing a strategic restructuring, shifting priorities in an effort to stabilize the company and reclaim a stronger position in the semiconductor industry.
