Intel and TSMC to Create a Joint Venture

Intel and TSMC to Create a Joint Venture
Depositphotos

Intel reached a preliminary deal with Taiwan Semiconductor Manufacturing to establish a joint venture. It would operate in the US-based chipmaker’s domestic production facilities.

TSMC will hold a 20% interest in the JV, with Intel and other US chipmakers owning a majority interest. The contract chipmaker is looking to share some manufacturing techniques with Intel in exchange for a minority stake.

In March, TSMC encouraged Nvidia, AMD, and Broadcom to acquire stakes in the planned venture. As part of a broader cost-cutting initiative, Intel first considered selling its foundry business to TSMC in September 2024. It sold its stake in UK chip design company Arm for about $147 million in August 2024.