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The logo in front of Intel's headquarters in California (USA). Photo: Bloomberg . |
According to Reuters , TSMC has offered US chip design companies including Nvidia, AMD, and Broadcom the opportunity to form a joint venture to control Intel's chip manufacturing plant.
In initial negotiations, the Taiwan-based chip company proposed operating Intel's chip foundry division, with an ownership stake of no more than 50%. Other sources indicate that Qualcomm also received an offer but later withdrew from the talks.
These negotiations took place after the administration of US President Donald Trump requested TSMC's assistance in reviving Intel, an iconic American technology company.
Sources indicate that TSMC had offered joint ventures before announcing its $100 billion investment plan in the US on March 3rd, which includes building five additional chip manufacturing facilities.
Negotiations are ongoing, with TSMC seeking partnerships with multiple chip designers. Several companies are interested in acquiring a portion of Intel, but two sources indicate the American chipmaker has refused to negotiate the sale of its design and foundry divisions separately.
On the other hand, information from the other two sources suggests that some members of Intel's board of directors supported the deal and had negotiated with TSMC, while a few leaders were firmly opposed.
If it were to materialize, any deal would need approval from the Trump administration, which is opposed to Intel (or its chipmaking division) being wholly foreign-owned.
Intel's future is in jeopardy as the company's stock plummeted more than 50% last year. Intel is projected to report a net loss of $18.8 billion in 2024.
According to records, the assets and equipment at Intel's chip foundry division were valued at $108 billion on the book value as of December 31, 2024.
The parties involved, including Intel, TSMC, Nvidia, AMD, and Qualcomm, all declined to comment. In early trading on March 12, Intel shares rose 6%, while Nvidia, AMD, Broadcom, and Qualcomm gained between 1.18% and 6.64%.
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Logo in front of TSMC's headquarters in Taiwan. Photo: Bloomberg . |
Contract chip manufacturing is part of former CEO Pat Gelsinger's efforts to salvage Intel, who was dismissed by the board in December 2024. Following the appointment of two interim CEOs, the company's AI chip manufacturing segment was temporarily suspended.
Any agreement between TSMC and Intel would present numerous challenges, requiring significant costs and resources. According to Reuters , the two companies' factories utilize different processes, chemicals, and tools for chip manufacturing.
Intel has previously collaborated with UMC (a company based in Taiwan) and Tower Semiconductor (Israel). This precedent suggests that Intel could still collaborate with TSMC, although it remains unclear how the trade secret issue will be resolved given that the two companies are currently rivals.
Previously, Reuters reported that Nvidia and Broadcom were testing chip manufacturing using Intel's most advanced 18A process. AMD was also evaluating the suitability of the 18A process.
However, 18A has been controversial in negotiations between Intel and TSMC. In February, Intel executives asserted that 18A technology was superior to TSMC's 2nm manufacturing process.
Source: https://znews.vn/intel-sap-co-cuu-nhan-post1537718.html
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