Is TSMC the tonic that Intel needs? Rumours swirl that Donald Trump administration could intervene to push a joint venture between the two

Intel Corp, which was once a giant in the semiconductor world, is currently going through difficult times due to increasing competition from Nvidia and Broadcom. However, there are now rumours that the US government may come to its rescue, reported Benzinga.

The US government might push for a joint venture between Intel and Taiwan Semiconductor Manufacturing to try and put Intel back on top, as per the report.

A new plan for Intel's future

According to Investing.com, Tristan Gerra, a Baird analyst, said that the US government is considering forcing Intel into a joint venture with TSMC to bolster domestic chip manufacturing.


Gerra pointed out that the deal would include TSMC deploying engineers to Intel's advanced 3nm and 2nm fabrication plants. This will leverage its expertise to help ensure the success of Intel's foundry business.

She said "While there is no confirmation and potential completion of this project could be lengthy, we think this move makes sense," as quoted by Benzinga.

According to the report, Intel and TSMC could form a new jointly owned firm to oversee the manufacturing aspects. The report also added that the joint venture could also qualify for funding under the US CHIPS Act, The act aimed at revitalizing the US semiconductor industry.

Intel struggles

Intel is now lagging behind its rivals, particularly in AI chips. As per the report, Intel's stock fell 60% last year, and its revenue has continued to decline. The company even reported a weak outlook ahead.

Even the company's leadership has changed after CEO Pat Gelsinger’s departure in December, Benzinga reported.

FAQs

What is the rumour between Intel and TSMC?
The rumour is that the US government may push for a joint venture between Intel and TSMC. This will help improve Intel’s semiconductor manufacturing, as per a report.

When will we know if this joint venture will happen?
Right now, it’s still all in the rumour stage. While it makes sense for Intel and TSMC to work together, the details are still unclear, and it may take time to finalize any plans, reported Investing.com.