TSMC is considering taking on a majority participation in Intel’s factories at the request of Trump administration authorities, a source said with the matter, while the president seeks to boost American manufacturing and maintain US leadership in critical technologies.
Trump’s team raised the idea of an agreement between the two companies in recent meetings with Taiwanese chip manufacturer, and TSMC was receptive. It is unclear if Intel is open to a transaction.
The conversations are in early stages, and the exact structure of a possible partnership has not yet been established. But the intended result would be to have the largest custom chip manufacturer of the world operating intel’s semiconductor factories in the US, the person said, who asked not to be identified because conversations are private. This would also address concerns about Intel’s deteriorated financial state, which forced the company to cut jobs and restrict its global expansion plans.
The arrangement may involve large American chip designers taking on equationary appearances, according to the person, along with the support of the US government. This means that the enterprise would not be the exclusive property of a foreign company. TSMC is Apple Inc.’s favorite chip manufacturer, Nvidia Corp. and other companies that develop semiconductors that feed AI algorithms.
TSMC and Intel, based in Santa Clara, California, refused to comment. A White House representative did not immediately respond to a commentary request.
Intel’s actions reduced losses on Friday after Bloomberg reported the discussions. The shares fell less than 1% to $ 24, at 1:56 pm in New York, after falling up to 5.3% at the beginning of the session.
Continues after advertising
Although Intel has lost a lot of land to rivals in the last five years, it still manufactures the most widely used components in the personal computer industries and servers. And has the largest and most advanced production network owned by a US -based company. These factories have assumed vital strategic importance while Washington works to reverse decades of semiconductor manufacturing that moved to Asia.
Under the former CEO Pat Gelsinger, Intel embarked on an ambitious and expensive plan to restore its chip manufacturing leadership, and the company won $ 7.9 billion in US government funding to support projects in four states. It also secured $ 3 billion to produce US army chips, all paid over time as Intel’s factories reach important milestones. The company received $ 2.2 billion until January.
But this effort has so far failed to attract enough external customers to make investments viable, particularly in a new place in Ohio. Intel’s own products are also losing market share, increasing pressure on their finances – just when it needs to spend heavily. Gelsinger was forced to leave in December after the advice lost confidence in its turnaround plans.
Continues after advertising
Although Intel has reiterated its commitment to invest in US factories – even while retreating their efforts abroad – Washington officials have been discussing contingency plans for months. An option favored by some in Biden administration was a possible agreement between Intel and Globalfoundries, Bloomberg reported.
This would have joined an older generation chips manufacturer with Intel’s state -of -the -art business. But Globalfoundries has moved away from state -of -the -art production years ago and has no money for an acquisition, so these conversations did not progress far beyond an exercise in thought.
Biden employees also suggested the possibility of TSMC licensing its manufacturing technology for use at Intel’s facilities, according to several people familiar with conversations. But TSMC was not interested in an arrangement that could ultimately benefit a competitor, people said. And Biden’s team was usually reluctant to play an active role in conversations about the deal, according to several people familiar with the situation.
Continues after advertising
Trump, on the other hand, is not shy about closing agreements – and TSMC, which has just held its board meeting in the US for the first time, is eager to maintain good relations with the new president.
Trump repeatedly accused Taiwan of “stealing” the US chip industry and threatened tariffs on semiconductors produced abroad. He expressed a preference for using this type of tax to boost US chips in the US rather than government subsidies – the approach adopted by the US chip and science law. This legislation, approved in 2022, led TSMC to earn $ 6.6 billion in subsidies to support three Phoenix factories.
But it was also Trump’s first administration that began to attract TSMC to the US, and Trump’s high officials consistently said their commitment to boosting domestic manufacturing. This is particularly true for technologies at the center of the US-China competition.
Continues after advertising
The US will ensure that the most powerful AI systems will be built in the US with designed and manufactured chips in the US, ”said Vice President JD Vance during a Paris AI dome earlier this week.
The fact that TSMC is open to an agreement with Intel indicates a change of posture compared to just a few months ago. In October, CEO CC Wei had told analysts that his company was not interested in purchasing Intel’s factories.
Asked again in January, Wei did not respond directly: “They are our very good customers,” he said. “I like them and they are very important to TSMC business as well. This is all I can say. ”
© 2025 Bloomberg L.P.
