TSMC Considers Running Intel’s U.S. Factories

Taiwan Semiconductor Manufacturing Co. (TSMC) is considering taking a controlling stake in Intel Corp.’s U.S. factories at the request of Trump administration officials, as the president seeks to bolster American manufacturing and maintain U.S. leadership in critical technologies, Mackenzie Hawkins and Ian King reported for Bloomberg News.

TSMC is the leading chipmaker for major tech giants such as Apple Inc. and Nvidia Corp., which rely on advanced semiconductors to power AI algorithms. I Photo: Taiwan Semiconductor Manufacturing Corporation

In recent meetings, Trump officials proposed a potential deal between TSMC and Intel, and the Taiwanese chipmaker was reportedly receptive to the idea. However, Intel's position on the matter remains unclear.

The discussions are still in the early stages, and the exact structure of the potential partnership has not yet been determined.

However, the intended outcome would involve TSMC fully operating Intel’s U.S. semiconductor factories, according to a source who requested anonymity due to the sensitive nature of the talks.

The deal could help address Intel’s financial struggles, as the company has been cutting jobs and scaling back expansion plans due to declining revenues.

A potential arrangement might involve major U.S. chip designers taking equity stakes, alongside support from the U.S. government, ensuring that the venture would not be entirely foreign-owned.

TSMC is the leading chipmaker for major tech giants such as Apple Inc. and Nvidia Corp., which rely on advanced semiconductors to power AI algorithms.

However, the potential deal could face political roadblocks, similar to those that have stalled Nippon Steel Corp.’s proposed acquisition of U.S. Steel Corp., Debby Wu and Jenny Leonard also reported for Bloomberg News.