BUSINESS OPERATIONS TSMC’s joint venture talks with Nvidia, Broadcom, Qualcomm, and AMD: A lifeline for Intel’s foundries?

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TSMC is in talks with major US semiconductor companies to form a joint venture aimed at taking over Intel’s struggling foundry operations. TSMC would manage Intel's manufacturing while limiting its ownership to 50 %, maintaining significant American control.

Taiwan Semiconductor Manufacturing Company (TSMC) has entered discussions with major US semiconductor players — Nvidia, AMD, Broadcom, and Qualcomm — to form a joint venture aimed at taking over Intel's struggling foundry operations.

This proposal would allow TSMC to manage Intel’s chip manufacturing while limiting its ownership to no more than 50 %, ensuring that the venture retains significant American control. This move comes amid Intel’s severe financial struggles, including a US $ 18.8 billion net loss in 2024, and marks an attempt to revive the company’s manufacturing division with support from US-based partners.

TSMC's role in Intel's manufacturing future

Intel’s foundry division needs no introduction. Once the world-leader in semiconductor manufacturing, it has been underperforming for several years due to a crippling inability to compete with rivals like TSMC and Samsung. Intel has valued its foundry assets at US $ 108 billion, but ongoing leadership changes, such as the appointment of Lip-Bu Tan as CEO in March 2025, signal the company’s intent to restructure and refocus on its manufacturing operations.

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TSMC’s proposal seeks to capitalize on this situation, offering a collaboration where TSMC would handle the operational aspects of Intel’s foundries while major US chipmakers, including Nvidia and Broadcom, would likely serve as both investors and key customers. The venture would offer these companies stable access to manufacturing capacity while potentially enabling Intel to retain some control over its operations.

The arrangement would give TSMC access to Intel’s proprietary technologies, such as Intel’s advanced 18A manufacturing process, which is said to be superior to TSMC's current 2-nanometer technology. Broadcom and Nvidia are reportedly already testing Intel’s 18A process, which could give them an edge in the competitive semiconductor market. This technological exchange could benefit TSMC, allowing it to integrate Intel's manufacturing capabilities with its own, accelerating its R&D and manufacturing timeline.

Support from the US government

This potential joint venture has significant political backing, especially from the Trump administration, which has encouraged such collaborations to revitalize US semiconductor manufacturing. The involvement of TSMC, a Taiwanese company, is seen as a strategic move to balance foreign expertise with US control over crucial manufacturing operations. The Trump administration’s request for TSMC to intervene in Intel’s restructuring reflects broader efforts to strengthen domestic production amidst increasing geopolitical tensions, especially with China.

Furthermore, TSMC’s decision to invest $ 100 billion in the US, including building new chip manufacturing plants, aligns with the US government’s objectives to reduce dependence on foreign manufacturing and ensure a stable semiconductor supply chain. By participating in the joint venture, TSMC could not only fulfill this political request but also solidify its relationship with the US government, ensuring favorable regulatory treatment and potential financial incentives.

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Implications for the US semiconductor market

If this joint venture goes ahead, it could change the dynamics of the semiconductor market. By bringing Intel’s foundries under TSMC’s management, TSMC would solidify its position as the leader in global chip manufacturing, especially in the US. Intel’s shift from a fully integrated manufacturing model to a more outsourced approach would mirror strategies used by competitors like Nvidia and AMD. This could make the semiconductor industry more segmented, with clearer distinctions between companies that design chips and those that manufacture them.

For Intel, this move could help it avoid direct competition in the foundry business while still benefiting from TSMC’s expertise. With the combined resources of TSMC and Intel, the partnership could also bring about more stable production levels, reducing delays and supply shortages that have hurt the industry in recent years. This would be a welcome change for industries that rely on a steady chip supply, such as consumer electronics and automotive.

In terms of technology, there’s potential for innovation as both companies share knowledge and resources. The collaboration could lead to faster advancements in manufacturing processes, benefiting the broader chip market. Overall, this joint venture has the potential to stabilize the market, improve production efficiency, and shift the way semiconductor companies operate on a global scale.

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