Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, has reportedly suggested a joint investment in struggling U.S. semiconductor giant Intel. The proposal includes major U.S. tech companies such as Nvidia, AMD, and Broadcom. Sources say Qualcomm may have also been approached.
What is TSMC Offering?
TSMC’s proposal involves running Intel’s manufacturing operations while limiting its ownership stake to less than 50%. This means Intel would retain control while benefiting from TSMC’s expertise in chip production.
Why is This Happening Now?
Reports indicate that the Trump administration requested TSMC’s help to stabilize Intel, which is seen as a symbol of U.S. semiconductor strength. Discussions are still in the early stages, and neither Intel nor TSMC has commented on the situation.
Government Approval Needed
Any final deal would need approval from the U.S. government, which does not want Intel’s manufacturing sector to be fully controlled by a foreign company.
Intel’s Struggles in the AI Era
Intel was once a leader in the global semiconductor industry, especially in making central processing units (CPUs) for personal computers. However, it has struggled to compete with Nvidia and AMD in high-performance hardware for artificial intelligence (AI).
With growing interest from companies like Broadcom in acquiring parts of Intel, this investment plan could shape the future of the U.S. semiconductor industry.
