Taiwanese semiconductor champion TSMC joining forces with American companies Nvidia, Advanced Micro Devices, and Broadcom to take over Intel? This scenario, unimaginable just recently, is reportedly on the table. For several weeks, it has been known that Donald Trump's administration has asked TSMC, the world's largest semiconductor manufacturer, to help it to turn around the former American chip champion Intel in the United States.
The project is reportedly taking shape, since behind the scenes, we learned from Reuters on Wednesday, March 12, the Taiwanese semiconductor leader approached American companies for a joint venture project. It reportedly proposed to Nvidia, Advanced Micro Devices and Broadcom to create a joint venture who would take the reins of Intel's foundry, according to four sources from Reuters.
Any deal would have to be approved by the White House
It would not involve taking over all of Intel's divisions, but only the one that makes electronic chips tailored to customer needs. TSMC is looking for partners, as it could not hold more than 50%, according to a request from the White House, which wants Intel to remain in American hands.
For several years, the former American champion of semiconductors, the essential components for smartphones, computers, and even artificial intelligence, has been going through a rough patch. Intel has announced a net loss of $18.8 billion in 2024 – its first since 1986. As a result, the US administration is reportedly pushing for the Taiwanese leader to take over some of Intel's factories.
Any deal will need to be approved by the White House. According to our American colleagues, discussions began before TSMC announced its massive investment last week, and have continued ever since.
When asked about this yesterday, the Broadcom executive replied that he was too busy "by AI and VMware for now" to consider taking over an Intel division.
Other experts, interviewed by Reuters, doubt the success of such a project, in particular because TSMC and Intel use very different processes, chemistries and chip manufacturing tools in their respective factories.
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