Taipei, Taiwan – Taiwan Semiconductor Manufacturing Company (TSMC) has put forward a proposal for a joint venture with major chipmakers such as Nvidia, Advanced Micro Devices, and Broadcom to take charge of Intel’s semiconductor foundries, reports Reuters. The proposition has also been received by Qualcomm. The talks are still preliminary, with TSMC expected to hold a 50% stake in the venture. Originally pushed by the Trump administration, this plan comes in response to a request from the U.S. government to involve TSMC in Intel’s recovery efforts.

Intel’s foundry division has been facing challenges in keeping up with competitors like TSMC and Samsung. The company’s foundry assets are valued at $108 billion, with a financial loss of $18.8 billion in 2024, the first since 1986. Despite numerous acquisition offers, Intel has resisted separating its design segment from its foundry operations.

TSMC had previously promised a $100 billion investment in semiconductor production in the U.S., including the construction of five new manufacturing facilities. While certain Intel board members support the joint venture, some executives have reservations. Operational and technical differences between Intel and TSMC present challenges, such as varying production techniques and tooling configurations. Intel asserts that its 18A manufacturing process surpasses TSMC’s 2-nanometer technology.

The potential collaboration between Intel and TSMC could have significant implications for the global semiconductor supply chain, particularly amid U.S.-China trade tensions and Taiwan’s crucial role in chip production. The cooperation is being closely monitored by industry stakeholders as they evaluate the feasibility and impact of such a partnership.

This article first appeared on GuruFocus, shedding light on the evolving dynamics within the semiconductor industry and the strategic moves being considered by key players to enhance competitiveness and resilience in a rapidly evolving market landscape.