Overview

• TSMC has initiated discussions with Nvidia, AMD, Broadcom, and Qualcomm to form a joint venture to operate Intel's foundry division, which has been struggling financially.
• Under the proposal, TSMC would manage Intel's custom chipmaking facilities while limiting its ownership stake to no more than 50%.
• The initiative stems from a request by the Trump administration to bolster U.S. semiconductor manufacturing and support Intel without full foreign ownership of its assets.
• Intel's foundry division remains integral to its business, though the company has resisted selling its chip design house separately despite internal disagreements on the TSMC deal.
• The proposal aligns with TSMC's broader $100 billion U.S. investment strategy, but the joint venture faces technical, operational, and regulatory challenges before moving forward.