Intel turns to TSMC for help as manufacturing woes persist
What's the story
Intel and Taiwan Semiconductor Manufacturing Company (TSMC) are said to be teaming up to create a joint venture to run Intel's chip manufacturing plants, according to The Information. TSMC, as per the report, will take a 20% stake in the new company. The talks for this partnership were reportedly started by the Trump administration to boost Intel's business, which has struggled with manufacturing setbacks lately.
Expansion plans
TSMC's $100 billion investment in US
The news of the joint venture comes after TSMC announced its plan to invest at least $100 billion in the US. The Taiwanese semiconductor giant plans to use the investment for building advanced manufacturing facilities. The move aligns with US goals to increase domestic manufacturing, following previous discussions about bringing advanced manufacturing back to America.
Opposition
Concerns over joint venture
Despite the preliminary agreement, some Intel executives have raised concerns that the joint venture could potentially disrupt Intel's own chipmaking technology development and lead to significant layoffs. There are also questions about how the two companies would integrate their operations, considering their use of different production equipment models and materials. Neither Intel nor TSMC has commented on these concerns.
Strategic shift
TSMC's commitment to US production
TSMC has been under pressure to move more of its production out of Taiwan, fearing that critical technology supplies could be disrupted in any conflict with Beijing. Under former US President Joe Biden, TSMC pledged over $65 billion toward three factories in Arizona, one of which started production in late 2024. Trump's recent trade tariffs have affected almost every sector but semiconductors have so far been spared from these measures.